Boeing is reducing its 737 deliveries in 2023 after spotting a quality issue involving the aircraft’s pressure bulkhead on certain models.
While the aerospace and defense manufacturer said on Wednesday that the issue was not an immediate risk to flight safety and the in-service fleet can continue operating, the temporary delivery snag has forced Boeing to retract its plan to deliver as many as 450 jets this year to just 375 to 400.
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Still, shares rose as Boeing CEO Dave Calhoun commented on demand.
“We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand.,” Boeing CEO Dave Calhoun said.
Despite the dip in deliveries, Boeing said suppliers will maintain production rate increases and bump up final assembly transition to 38 per month by year-end. In 2025 and 2026, the company will spike production levels to 50 per month, with estimated costs to complete the rework included in third quarter results, Boeing said.
Meanwhile, the 787 program will also move production goals to five per month and will jump to 10 per month between 2025 and 2026, while delivering 70 to 80 planes this year.
Boeing also reported third quarter earnings on Wednesday, generating $18 billion in revenue and posting a loss of $3.26 per share.
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Boeing shares have lost over 3% this year.