Boeing to Slow 737 Production Amid Quality Concerns, Aims for Stabilization in Second Half of 2024

The aerospace giant is addressing manufacturing flaws and supplier issues under regulator scrutiny, with a gradual increase in output expected later this year.

• Boeing plans to build its 737 MAX aircraft at a slower pace in the first half of 2024 due to quality issues and supplier glitches, with output expected to climb toward its 38-a-month target in the second half.
• The Federal Aviation Administration has barred Boeing from increasing production rates until quality improvements are verified, following a near-disaster with a 737 MAX 9 aircraft in January.
• Boeing's Chief Financial Officer Brian West reassures shareholders that the company can maintain its medium-term financial goals despite the current crisis.
• The company delivered 27 jets in January, a 29% decline from the previous year, highlighting the uncertainty around production amid FAA and customer quality control monitoring.
• Boeing's stock has declined 22% this year, reflecting investor concerns over the impact of the crisis on aircraft shipments and cash flows.

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