Boeing CEO Kelly Ortberg said yesterday that the company will not reach its 737 production rate target of 47 jets a month until next year, a serious setback to the company’s ongoing recovery.
The company had planned to reach the target this past summer, but it will take ‘into early next year,’ Ortberg said during an interview on CNBC.
In September, he said that Boeing has not been able to make wings fast enough.
Deliveries of the popular single-aisle jetliner are a major driver of Boeing’s cash flow.
Shares of the US planemaker fell 2.5 per cent in premarket trading even as Boeing continues to recover from years of crises and controversies that dented its reputation, drained cash and saddled it with a heavy debt load.
During the quarter, Boeing secured certification for the 737 MAX 7 from US regulators, won the US Navy’s sixth-generation F/A-XX fighter contract and generated free cash flow for another quarter, while certification of the larger MAX 10 followed in October.
Boeing reported an adjusted loss of 34 cents per share for the quarter through September, compared with market expectation of 21 cents, according to data compiled by LSEG.
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