Allison Lampert and Tim Hefer
(Reuters) – Boeing has told suppliers it is delaying a key phase of production of its 737 family of planes by three months, two industry sources said, as it continues to grapple with a crisis that is crippling production.
Boeing’s (NYSE:) new delivery schedule communicated to the industry calls for 737 production to reach 42 per month in September, up from a previous target of reaching that volume in June, the people said. Boeing was not available for comment.
Boeing’s plane production has slowed sharply due to increased scrutiny from regulators, airlines and lawmakers after a January incident in which a door plug came off an Alaska Airlines jet while it was in the air.
Boeing’s supplier master schedule lays out expectations for when suppliers should reach target production levels. Analysts say that doesn’t necessarily reflect actual production, which is lagging due to regulatory scrutiny and supply constraints.
However, Boeing’s decision to delay the target is an indication that the company believes supply pressure continues unabated. Rival Airbus, the world’s largest plane maker, is also bracing for renewed disruption in the short term due to parts and labor shortages, Reuters reported last month.
The new delivery schedule sees production reaching 47 per month in March 2025, up from January of the same year. In September 2025, production will reach 52 per month compared to June.
Boeing shares fell 2.2% in Friday trading.
The company said last month that it would burn rather than generate cash in 2024 and deliveries would not increase in the second quarter as originally expected.