Boeing CEO Flags Slower 737 MAX Ramp, 777X Engine Delays and SPEEA Strike Risk at Morgan Stanley Conference

Boeing CEO Kelly Ortberg told Morgan Stanley's 14th Annual Laguna Conference on Wednesday that stabilizing 737 MAX production at 47 jets per month is taking longer than expected, with wing production at the Renton, Washington factory identified as the primary supply-chain bottleneck. He said the company has plans to address the constraint, but did not give a revised timeline for reaching the target rate. Slower ramp-ups across both the 737 and 787 programs reduce the likelihood of Boeing hitting the upper end of its 2026 free-cash-flow forecast.

On the 737 MAX 10, the largest variant of the MAX family and one that has faced years of certification delays, Ortberg said approval is coming "very shortly." For the 777X, Boeing now expects some flight-test activity to spill into 2027 because of a GE engine seal fix required before final certification, though the company maintained its target of beginning 777X deliveries in 2027. Ortberg also said initial 777X unit plans are unchanged and that contract talks with customers are underway.

Ortberg warned that a strike by the Society of Professional Engineering Employees in Aerospace, known as SPEEA, would shut down the 777X certification program entirely until engineers return to work, adding a labor-disruption risk to the already extended schedule. He also said he has downsized his expectations for a large Chinese jet order emerging from an anticipated Trump-Xi summit, removing a potential demand catalyst.

Boeing shares fell sharply following his remarks, contributing to a drop of nearly 650 points in the Dow Jones Industrial Average on the day. Korean Air separately finalized a record order for 103 Boeing jets, though that positive demand signal was overshadowed by the production and certification concerns Ortberg outlined.