Boeing to Resume China Deliveries and Eyes 737 Max Production Hike

Boeing is preparing to resume aircraft deliveries to Chinese airlines next month after a lengthy pause stemming from trade tensions during the Trump administration. CEO Kelly Ortberg announced the development during a recent Bernstein conference, stating that Chinese officials have now confirmed their intention to begin accepting aircraft handovers again. The first deliveries are expected to take place in June, marking a significant milestone in Boeing’s efforts to stabilize its international business operations.

The company, a major U.S. exporter, had previously halted deliveries to China as part of the broader fallout from the U.S.-China trade dispute. During the pause, Boeing faced increased pressure from global competition and ongoing tariff challenges, including duties on imported parts for its wide-body Dreamliner aircraft assembled in South Carolina. While these tariffs remain a cost factor, Ortberg explained that they are often offset when planes are delivered internationally. Only deliveries to U.S. carriers trigger unrecoverable tariffs, he noted.

Despite the complexities of global trade policies, Ortberg expressed confidence that many of the tariffs would not be permanent. He emphasized that Boeing is focused on long-term recovery and growth, particularly through its bestselling 737 Max family of jets. The Federal Aviation Administration has restricted Max production to 38 units per month since a January 2024 mid-air incident involving a door plug failure on an Alaska Airlines flight. However, Boeing aims to increase production to 42 aircraft per month by mid-2025, with a potential jump to 47 monthly units by the end of the year, pending FAA approval.

Ortberg also confirmed that Boeing remains on track to achieve certification for its long-delayed Max 7 and Max 10 variants by the end of 2025. These models represent the smallest and largest versions of the Max series and are seen as critical to Boeing’s efforts to meet diverse airline demands and compete with rival Airbus across all narrow-body segments.

Since taking over as CEO in August 2024, Ortberg has earned praise for navigating Boeing through a period of intense scrutiny and operational setbacks. His leadership follows years of reputational damage and financial strain triggered by two fatal Max crashes and the ensuing global grounding of the aircraft. The company is now working to rebuild trust, improve production quality, and restore timely delivery schedules.

United Airlines CEO Scott Kirby was among those to voice support for Ortberg’s leadership, noting that Boeing has made visible progress under the new regime. Speaking to CNBC, Kirby highlighted the broader challenge of aircraft supply chain constraints and said United had anticipated ongoing delivery delays by placing larger-than-needed orders in advance.

With deliveries to China resuming and Max production likely to rise, Boeing appears to be gaining momentum in its recovery strategy. The company’s outlook for the second half of 2025 includes major milestones in certification, capacity expansion, and restoring global market share in both the narrow-body and wide-body aircraft sectors.

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Sources: AirGuide Business airguide.info, bing.com, cnbc.com