Boeing expects delivery output cycle to reach 38 units a month

Boeing expects its monthly supply chain cycle to reach 38 units per month, though output from the first half of the year will be lower as it incorporates the findings from the FAA's investigation. Speaking at the TD Cowen 45th Annual Aerospace & Defence Conference on February 13, 2024, Boeing CFO and executive vice president-finance Brian J. West said: ""The FAA has increased oversight, and we welcome it. We believe the scrutiny from ourselves, from the regulator, from our customers is only going to work to make us stronger. We also have to acknowledge that if we go slow and we stay at these cap rates for longer, we respect that."" When asked about the first half of 2024's lower output, West would not give a specific estimation. West noted that the 38 monthly delivery cycle will be ""dictated by the regulator."" He added: ""The audit plan has been outlined. It's clear. We're two weeks into a six week audit. The next milestone will be the conclusion of the audit, and then from there it'll be whatever the FAA decides to do and they'll determine next steps."" West said that Boeing is ""perfectly fine"" with its current position as they continue to learn and build upon the lessons to ""build every next airplane with higher and higher quality."" Boeing 777 and 787 fuselage, nacelles and struts manufacturer Spirit AeroSystems president and CEO Pat Shanahan said in the fourth quarter 2023 earnings call that ""we are cycling at 42 a month but building at 38 a month."" The FAA audit has currently capped 737 production at 38 per month. West said: ""We have to do things like pause the line... and we are doing that so that we can get the benefit of our audit, we can get the benefit of our own inspection protocols."" West added that certification on the 737-7 and 737-10 are ""progressing pretty well"" with the 737-7 specifically being ""very close to finishing the analysis and documentation"" required by Boeing. West said that the Boeing ""will finish the flight test certification"" for the Boeing 737-10 and will utilise the lessons learned from the 737-7 certification process.