Boeing Co. has conveyed assurance to Ryanair Holdings Plc that it will increase 737 production rates by the end of October, as stated by the CEO of the Irish airline.
Ryanair, a significant customer of Boeing, anticipates receiving 25 of its 737 aircraft between August and October, which is four to five months earlier than initially scheduled, according to CEO Michael O’Leary's remarks to reporters in London this week.
Officials from the US planemaker have informed O’Leary that they aim to reach a production rate of 42 per month for the 737 by October, pending government approvals, he noted.
“They’ve informed us that they plan to apply to the FAA in September and expect the actual production rate increase to occur in October,” O’Leary mentioned.
If everything proceeds as planned, Boeing would be producing its popular 737 family jets at the highest rate since early 2020. The planemaker is intending a series of production rate hikes, all closely monitored by US regulators, which are crucial for improving its financial stability after years of difficulties.
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O’Leary’s insights shed light on the production plans that Boeing is sharing with key clients as it attempts to lift a production cap imposed by the FAA following a midair incident in January 2024.
Under the leadership of Boeing CEO Kelly Ortberg, aircraft are being produced more swiftly and with fewer flaws at the planemaker’s facilities in the Seattle area, O’Leary remarked, also adding in a separate Bloomberg TV segment that US regulators should permit Boeing to elevate factory production rates.
“They’re really addressing quality control effectively,” O’Leary stated. “They have made significant improvements in the past 12 to 18 months.”
Boeing’s stock increased by 0.5 percent to $235.95 as of 3:58 p.m. New York time. The shares have risen by 32 percent this year, marking the second-best performance among the 30 stocks in the Dow Jones Industrial Average.
US authorities limited the production of Boeing’s most popular aircraft to 38 per month after a door-panel blowout occurred midair on an Alaska Airlines flight, revealing serious issues with the planemaker’s quality processes.
Earlier this summer, Boeing raised the production of its 787 Dreamliner to a seven-jet monthly rate following a similar FAA assessment.
O’Leary mentioned that despite the improvements at Boeing, he accepted the planes earlier as he still harbors concerns about the sustainability of its recovery.
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“We have concerns about tariffs and additionally worry that another issue could arise with Boeing,” he stated. “So, it’s prudent to accept them early. It indicates that Boeing is eager to deliver these aircraft sooner.”