Boeing is preparing to request approval from the Federal Aviation Administration (FAA) later this year to increase production of its 737 Max aircraft to 42 units per month, CEO Kelly Ortberg announced on Wednesday, CNBC reports.
The move follows signs of recovery for the aerospace giant, including a narrowing quarterly loss and improved aircraft deliveries.
In the first quarter of 2025, Boeing posted a net loss of $31 million, a significant improvement from the $355 million loss reported a year earlier. Revenue rose 18% to $19.5 billion, slightly ahead of analyst expectations, while the company burned $2.3 billion in cash — less than projected and down from $4 billion during the same period last year.
“We are moving in the right direction and making progress,” Ortberg said in a company memo.
He credited increased deliveries and operational improvements for the better-than-expected results. Boeing delivered 130 commercial airplanes during the quarter, up from 83 in the first quarter of 2024, helping boost revenue in the commercial unit by 75% to $8.1 billion.
Ortberg, who was brought on board to lead Boeing through a challenging period marked by safety and production issues, emphasized progress on manufacturing reforms. This includes addressing concerns following a midair incident in January 2024, when a door plug detached from a 737 Max shortly after takeoff due to missing bolts. Although no one was injured, the incident added scrutiny to Boeing’s production practices and prompted the FAA to limit output increases until further approval.
As Boeing navigates its recovery, Ortberg also faces questions about trade policy. Executives are expected to address the impact of tariffs during the company’s earnings call, especially amid ongoing tensions stemming from President Donald Trump’s trade policies. The aerospace sector — a key US exporter — has been affected by rising costs of imported components. GE Aerospace CEO Larry Culp recently lobbied for the return of duty-free treatment for aerospace goods, citing potential industrywide costs of over $1 billion.
Despite global trade uncertainties, Ortberg remains optimistic.
“Our strong start to the year combined with demand for airplanes and our half-trillion-dollar backlog gives us the flexibility we need to navigate this environment,” he told employees.
Investors responded positively to Boeing’s results, with shares rising more than 6% in early trading Wednesday.
However, internal challenges persist. A recent employee survey revealed lingering concerns about workplace culture and leadership. Only 27% of respondents said they would highly recommend working at Boeing, and fewer than half expressed confidence in senior leadership.
In addition to bolstering its commercial business, Boeing is streamlining operations. On Tuesday, it announced the $10.55 billion sale of parts of its digital aviation unit — including Jeppesen — to private equity firm Thoma Bravo. Meanwhile, the defense division, which has struggled with cost overruns, saw a 9% decline in revenue to $6.3 billion for the quarter. Still, the unit scored a strategic victory with a new contract to build the F-47 fighter jet for the US Air Force.
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