Boeing plans to boost 737 Max production to 38 planes per month

Boeing has announced plans to increase its output of 737 Max planes from 31 to 38 per month later this year, despite ongoing manufacturing issues. This increase in production comes as a result of strong aircraft demand and an increase in air travel as customers begin to take advantage of the rebound.

The company expects to deliver between 400 and 450 of its 737 planes this year.

Boeing CEO Dave Calhoun acknowledged the importance of focusing on execution and meeting customer commitments during this time of high demand. The company also plans to raise output of its 787 Dreamliner to five planes per month later this year.

The announcement came as Boeing reported its revenue was up 28% YoY, helped by stronger deliveries. Despite the increase in revenue, the company still suffered a loss of $425 million or 69 cents per share. The pace of deliveries is important to Boeing’s cash flow goals since customers pay for the bulk of the planes upon delivery. The company reaffirmed its expectation to reach adjusted free cash flow for the year of between $3 billion and $5 billion.