boeing Chief Executive Officer Kelly Ortberg said Wednesday that the company has met a requirement set by the Federal Aviation Administration to increase production of 737 Max aircraft to 47 aircraft per month.
Ortberg said at the Bernstein conference that the company is currently deploying aircraft at a rate of 42 aircraft per month.
“We passed the 47 rate cap review, so we’re now operating the line at a 47 rate per month,” Ortberg said. “It will probably take a few months to stabilize. … My guess is that interest rates will continue to rise. It may take a little longer, but we’re currently on track for 47 a month interest rates and should get there within the next few months.”
Ortberg said in Boeing’s latest earnings call last month that the company expects to increase production of its best-selling aircraft to 47 a month this summer. He said Wednesday that he is “very confident” that Boeing is ready to meet that rate.
Boeing has historically produced as many as 57 planes a month, but Ortberg said he doesn’t believe the company can currently maintain that production rate with its safety and quality processes.
“We’d like to get to 63 monthly rates at some point, so we’re looking forward to that,” Ortberg said. “The market will support these rate increases.”
Still, he acknowledged that Boeing has “work to do” to get to the point where it can further increase production rates for the 737 Max aircraft. The company aims to achieve a production rate of 52 units per month, a process that could take at least six months if the newly approved production rate takes effect in July or August, Ortberg said.
“I think the whole world is watching to see if we can definitely achieve 47th and 52nd place,” he added.
—CNBC’s Meghan Reeder contributed to this report.
