Boeing Increases 737 Production Rate on Improving Demand

Boeing's 737 MAX will extend the program's fuel-efficient edge over competitors. Photo Credit: Boeing


Boeing (NYSE: BA  ) announced today that production on its 737 program will increase to 47 airplanes per month in 2017. That's the highest rate ever for the best-selling airliner in history and would produce more than 560 aircraft from that model per year. If you're keeping track, that's a production increase of nearly 50% since 2010. 

"We're taking this step to make sure our airplanes get into the hands of our customers when they need them," said Beverly Wyse, vice president and general manager, 737 Program, Boeing Commercial Airplanes, in a press release. "Our employees and our suppliers have successfully increased the production rate to unmatched levels over the last three years. This increase will lay a solid foundation as we bridge into production on the 737 MAX."

The improved production rate will likely help margins going forward, but Boeing doesn't expect the move to have a significant impact on its 2013 financial results.

Boeing's 737 is highly efficient and a proven market leader. There have been more than 11,200 orders for the aircraft, which include in excess of 1,600 orders for the 737 MAX that will have a 14% fuel efficiency advantage over the best models in the industry. Majority of growth over the next two decades will come from single-aisle aircraft, and Boeing looks poised to capture more than its fair share.

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