Analysts Raise Concerns About Supply Chain Delays

Boeing to Miss Key 737 MAX Production Target in 2024

Analysts Raise Concerns About Supply Chain Delays

Boeing Will Produce 32 MAX Jets Per Month in 2024, Below Initial Production Target

Boeing is facing a setback in its plans to increase production of its 737 MAX jet. According to analysts at rating agencies Moody's and Standard & Poor's, the company is likely to miss its key production target for 2024. This news comes as a disappointment to investors and analysts who had expected Boeing to ramp up production of its best-selling aircraft sooner.

According to the report, Boeing will produce approximately 32 MAX jets per month in 2024, falling short of its initial target of 42 per month. The analysts cite supply chain disruptions as the primary reason for the production delays, which have been exacerbated by the ongoing global pandemic.

The delay in 737 MAX production is a blow to Boeing's efforts to regain market share after the two-year grounding of the aircraft following two fatal crashes. The 737 MAX is Boeing's most important aircraft, and the company had hoped to increase production to meet the increasing demand for air travel.

Boeing has acknowledged the production delays and has stated that it is working to mitigate the impact on its customers. The company has delayed plans to increase production further in 2025 and 2026 until it can address the supply chain issues.

The news of the production delays has had a negative impact on Boeing's stock price. Investors are concerned about the company's ability to meet its financial targets and remain competitive in the global aircraft market.