Boeing Production Restarts After Strike

Last Friday, Boeing unexpectedly relaunched production of its 737 MAX line of single-aisle airliners. The resumption comes roughly one month after a seven-week strike involving some 33,000 factory workers. According to a Reuters report, Boeing holds orders for some 4,200 MAX aircraft, and getting the production line back on track is an important step in the recovery of the embattled airframer.

The FAA had capped production levels at 38 aircraft per month after the Alaska Airlines incident in which a door plug departed a nearly-new MAX while in flight. It remains unclear whether FAA Administrator Mike Whitaker will enable Boeing to increase production to its planned level of 56 airplanes per month. In any case, analysts believe Boeing will average just 29 MAXes per month during 2025.

Boeing stock rose 4.5% upon announcing the restart of production yesterday. In a statement, the company said, “Our team has worked methodically to restart factory operations in the Pacific Northwest. We have now resumed 737 production in our Renton factory, with our Everett (Washington) programs on plan to follow in the days ahead.”