Boeing just got the FAA's blessing to lift 737 Max output from 42 jets a month to 47.
That's a step up. But it's slower than where Boeing was back in 2018.
Back then the company built 57 a month. It now says its safety checks can't hold up at that pace.
CEO Kelly Ortberg said Boeing passed the FAA's "capstone review" for rate 47.
That's the sign-off to push past 42 a month. The line is now running at the new rate.
Ortberg said it will take a few months to settle there.
He shared the news Wednesday at a Bernstein conference. Boeing shares moved up about 1.7% on the news.
This is the same rate Ortberg flagged on the last earnings call as a summer goal. He now says Boeing is "highly confident" it will hit the mark.
For context, the FAA capped 737 Max output at 38 a month after the January 2024 Alaska Airlines door-plug event. Boeing has spent the last two years working back up.
Each rate hike has needed its own FAA sign-off and months of clean line work.
Boeing is also ramping its 787 line in parallel. The wide-body jet had its own quality probe last year.
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After 47 comes 52 a month. Ortberg said that jump could take six months or more from when the FAA signs off.
That sign-off is likely in July or August.
The long goal is 63 a month. Ortberg said the market would buy at that pace if Boeing can get there safely.
He also said Boeing has "work to do" before reaching 63. That means more reviews and more time on the floor.
For context on how far the rate could climb: Boeing built 57 a month before the 737 Max crises forced a rebuild of how the planes get put together.
The 737 Max is still Boeing's best-selling jet. Airlines around the world are still waiting on jets they bought years ago.
Each month of slow output adds more pressure to the backlog. Airlines are pricing those delays into their fleet plans.
Some carriers are leaning on used jets to plug the gap.
One Ortberg quote sums up the pressure on Boeing.
"I think the whole world's watching to make sure we make 47 and 52."
Suppliers, airlines, regulators and investors all need Boeing to hit these rates on time. Each delay ties up cash and forces airlines to fly older planes that burn more fuel.
Boeing shares are still well off their 2019 highs. Hitting the rate targets is a key piece of the path back.
Getting back to 57 will be a separate fight.
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