The Federal Aviation Administration raises the limit on production of Boeing 737 MAX aircraft to 42 per month

Boeing The US airline has received regulatory approval to increase production of its best-selling 737 MAX aircraft to 42 planes per month, a significant milestone for the manufacturer nearly two years after the Federal Aviation Administration restricted its production following a mid-air disaster.

In January 2024, the Federal Aviation Administration banned Boeing from building planes at a rate of no more than 38 per month — even though it was below that level at the time — after a door socket on a new 737 Max 9 nearly blew off one of the planes. Alaska Airlines Flight as it ascends from Portland, Oregon.

A report from the National Transportation Safety Board found that Boeing failed to reinstall the key pins on the door plugs before they left the factory. The 737 Max returned and landed safely, but it put the company back in crisis mode just as leaders were anticipating a year of transformation.

The Federal Aviation Administration said Friday it would still oversee Boeing’s production. “FAA safety inspectors conducted extensive reviews of Boeing’s production lines to ensure that this small increase in production rate would be done safely,” the agency said in a statement.

Boeing said it will work with its suppliers to increase production.

“We appreciate the work our teams, suppliers and the FAA have done to ensure we are prepared to ramp up production while putting safety and quality at the forefront,” Boeing said Friday in a statement.

Increasing production is key to the company’s turnaround after years of problems, with airlines and other customers paying for the bulk of the plane when they take delivery. CEO Kelly Ortberg, who was hired last year to stabilize the largest U.S. manufacturer, said last month that he expected to soon receive FAA approval to increase production to 42, with further increases planned for the future.

“We’ll go from 42 and then we’ll go up five more, and we’ll go up five more,” Ortberg said at a Morgan Stanley investor conference in September. “We will get to where that inventory is more in balance with the supply chain, perhaps around a production rate of 47 per month.”

The change shows the FAA’s softening tone and increased confidence in Boeing after years of restrictions. Last month, the agency said it would again allow Boeing to sign off on some of its planes itself before delivering them to customers, rather than that responsibility falling solely to the FAA.

The MAX program was disrupted after two plane crashes in 2018 and 2019, killing all 346 people on board the flights. The plane was grounded for about two years. Covid has also hurt production, followed by supply chain problems and, last year, a labor strike at major Boeing factories in the Seattle area.

Boeing hasn’t posted an annual profit since 2018. But it has increased production, and its deliveries of new planes are on track to hit the highest rate since that year.

Boeing is scheduled to announce its quarterly results on October 29.

– CNBC Phil Lebo and Megan Reader She contributed to this report.