Boeing has restarted production of its 737 MAX aircraft after a lengthy halt caused by an employee strike. The company had been grounded for approximately seven weeks, with around 33,000 factory workers participating in the labor dispute. Production is now set to resume, following the end of contract negotiations between Boeing and its workforce.
Despite the production restart, Boeing’s current output remains limited due to regulatory restrictions imposed by the Federal Aviation Administration (FAA). The FAA had introduced these restrictions after a January 2024 incident involving an Alaska Airlines 737 MAX 9, which lost a door panel during flight. These regulations cap production at around 38 planes per month.
The company faces challenges in meeting its long-term goal of increasing production to 56 planes per month. Analysts at Jefferies expect Boeing to produce an average of 29 737 MAX planes per month in 2025, citing supply chain issues and heightened regulatory scrutiny.
Source: https://www.benzinga.com/trading-ideas/movers/24/12/42422912/boeing-shares-are-taking-off-tuesday-whats-going-on