In January 2024, the FAA restricted Boeing to building 737 Max planes at a rate of no more than 38 per month, though production had been below that level at the time. This move came after a door plug from a nearly new 737 Max 9 blew off during an Alaska Airlines flight as it climbed out of Portland, Oregon.
A National Transportation Safety Board (NTSB) report found that Boeing failed to reinstall key bolts on the door plug before the aircraft left the factory. Despite the incident, the 737 Max returned and landed safely. However, this event put Boeing back into crisis mode just as company leaders were anticipating a turnaround year.
The FAA confirmed on Friday that it would continue overseeing Boeing’s production. “FAA safety inspectors conducted extensive reviews of Boeing’s production lines to ensure that this small production rate increase will be done safely,” the agency stated.
Boeing responded by saying it would collaborate closely with its suppliers to increase production. “We appreciate the work by our team, our suppliers and the FAA to ensure we are prepared to increase production with safety and quality at the forefront,” Boeing said in a statement released on Friday.
Increasing output is crucial to Boeing’s turnaround after years of challenges, as airlines and other customers typically pay for the bulk of an aircraft when they receive it. CEO Kelly Ortberg, who was appointed last year to stabilize the top U.S. manufacturer, said last month that he expected to soon gain FAA approval to raise production to 42 planes per month, with additional increases planned thereafter.
“We’ll go from 42 and then we’ll go up another five, and we’ll go up another five,” Ortberg told a Morgan Stanley investor conference in September. “We’ll get to where that inventory is more balanced with the supply chain, probably around the 47 a month production rate.”
This change reflects the FAA’s softening stance and growing confidence in Boeing after years of strict restrictions. Last month, the agency announced it would once again allow Boeing to sign off on some of its aircraft itself before they are handed over to customers, rather than the FAA retaining sole responsibility.
The 737 Max program faced severe setbacks following two fatal crashes in 2018 and 2019, which killed all 346 people on board. The aircraft was grounded worldwide for nearly two years. Production was further impacted by the COVID-19 pandemic, supply chain disruptions, and a labor strike last year at Boeing’s main factories in the Seattle area.
Boeing has not posted an annual profit since 2018. However, the company has been steadily increasing output, and its deliveries of new planes are on track to reach the highest levels since that year.
Boeing is scheduled to release its quarterly earnings on October 29.
*CNBC’s Phil LeBeau and Meghan Reeder contributed to this report.*
https://www.cnbc.com/2025/10/17/boeing-737-max-production.html