Boeing stock rises after FAA approves production increase for 737 MAX

Published 20/10/2025, 11:56
© Reuters.

Investing.com -- Boeing stock gained 1.7% in premarket Monday trade after the Federal Aviation Administration (FAA) approved an increase in production rates for the company’s 737 MAX aircraft.

The FAA said it would allow Boeing to raise monthly production from 38 to 42 aircraft. This development aligns with analysts’ expectations that Boeing would reach this production target by the end of the year.

The regulatory approval follows consistent messaging from Boeing management, including CEO Kelly Ortberg, who had indicated the company was on track to receive this clearance. One key performance indicator related to rework amount was reportedly completed last month, paving the way for the production increase.

With this approval secured, Boeing is now positioned to implement further planned production increases for the 737 MAX. The company is expected to move to 47 aircraft per month in 2026, with subsequent targets of 52 and 57 per month. Ortberg has previously described a rate break target using six-month intervals.

This production increase for the 737 MAX follows a similar ramp-up for Boeing’s 787 Dreamliner, which recently increased to 7 aircraft per month with plans to reach 10 per month in 2026.

Bernstein analysts noted: "The rate increase for the MAX follows the previous rate increase for the 787 to 7/month, with plans to reach 10/month in 2026. Historically, we have found that Boeing’s stock performance is tied to production ramps, which are now fully underway on the two programs that matter most."

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