Boeing shares jump as 737 MAX production reportedly resumes
By Benjamin Chiou
Date: Tuesday 10 Dec 2024
(Sharecast News) - Shares in struggling aerospace giant Boeing jumped on Tuesday after reports that it resumed production of its 737 MAX jetliners last week.
A month after ending a seven-week strike by 33,000 factory workers, the manufacturer restarted production of its best-selling plan last Friday, Reuters reported, citing three sources familiar with the matter.
That was just one day after the head of the FAA, Mike Whitaker, said that production would resume later this month.
Boeing has more than 4,000 orders for the 737 MAX aircraft, but production has been held back by several high-profile setbacks, including supply chain issues and the infamous mid-air panel blowout on an Alaska Airlines flight in January.
Safety concerns prompted the transport regulator to cap production at just 38 jetliners a month, and Whitaker has refused to indicate whether that limit would be removed any time soon.
Boeing itself is working towards a production rate of 56 units a month, though it is unclear when that target will be met.
The stock was up nearly 5% at $164.80 by 1034 in New York, trading at levels not seen since late-August.
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