Boeing CEO Warns 737 Max Output Hit by Wing Bottleneck Ahead of Critical Union Deadline

Boeing ($BA) CEO Kelly Ortberg acknowledged that the company’s 737 Max production ramp has taken longer than expected, citing an internal bottleneck in wing fabrication at its Renton, Washington facility. Speaking at Morgan Stanley’s 14th Annual Laguna Conference, Ortberg stated that while Boeing is driving toward a target of 47 aircraft per month, the production cadence is not yet fully stabilized, delaying its planned acceleration to 52 jets per month.
The pacing of the 737 Max turnaround remains crucial to Boeing’s multi-year recovery plan and its normalized long-term free cash flow target of $10 billion annually. Moving to rate 52 will require smooth execution at both the main Renton plant and the newly established North Line in Everett, while current 2026 free cash flow guidance stands at $1 billion to $3 billion (with CFO Jay Malave pointing toward the $2 billion midpoint).
The production ramp faces an additional near-term labor test as the contract covering roughly 19,000 engineering and technical workers under the SPEEA union expires on October 6. Ortberg warned that a work stoppage would halt the 777 certification program and spill over into broader assembly operations, though Boeing has prepared contingency protocols to maintain a baseline level of 737 manufacturing.