Boeing announced on Tuesday that it does not expect to substantially raise output of its 737 Max aircraft until the second half of 2027. Chief Executive Kelly Ortberg told investors on the company’s quarterly earnings call that Boeing is aiming for a production rate of 52 planes a month during that period, up from the current manufacturing pace of approximately 47 aircraft monthly. The delay stems from production challenges related to wing manufacturing, which is proceeding at a slower tempo than initially anticipated.
Ortberg reiterated the company’s commitment to prioritizing safety and quality over speed, telling media that the manufacturer intends to execute its production increase carefully. In a message to staff, Ortberg acknowledged rising expectations and emphasized the need to elevate performance through lean and efficiency improvements while maintaining high safety and quality standards. Aircraft production and deliveries are crucial to Boeing’s financial recovery, as customers typically pay the majority of an aircraft’s purchase price upon delivery.
For the third quarter ending September 30, Boeing reported a net loss of $116 million, or 26 cents per share, compared with a $5.34 billion loss, or $7.14 per share, in the same period a year prior. Revenue increased 4% year-over-year to $24.19 billion, while free cash flow rose to $464 million from $238 million in the third quarter of 2025. The defense unit contributed significantly to the company’s performance, with defense revenue jumping 15% to $7.94 billion.
The commercial aircraft division, however, faced headwinds. Revenue in that business fell 3% to $10.72 billion, with the unit posting a negative operating margin of 6.5% due to delivery mix challenges, higher costs associated with future production adjustments, and increased supply chain expenses. Boeing delivered 161 commercial airplanes in the quarter. On a separate note, the Federal Aviation Administration recently approved the 737 Max 10 variant, completing the final certifications for the aircraft line. Stock market reaction was negative, with Boeing shares declining 10% on trading Tuesday.
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