Boeing pushes 737 production target into 2027 despite record $745bn backlog

Boeing will not achieve its planned 737 production rate of 47 aircraft per month until early 2027, chief executive Kelly Ortberg has said, as the manufacturer continues to face supply-chain constraints despite record demand.

Speaking to CNBC following the release of Boeing’s third-quarter results, Ortberg said the company had hoped to achieve the milestone during 2026. It now expects it to take “into early next year”.

The delay comes despite continued progress across Boeing’s commercial aircraft programmes and a record order backlog.

Record backlog and certification milestones

In its third-quarter results published today (27 October), Boeing reported revenue of $24.2 billion, operating cash flow of $1.5 billion and a company-wide backlog of $745 billion – the highest in its history.

The manufacturer also completed two major certification milestones for the 737 MAX family. The 737-7 received amended type certification from the Federal Aviation Administration during the third quarter, while the 737-10 was certified in October.

“Recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy’s sixth-generation fighter aircraft, are important steps as we continue building on our progress,” said Ortberg.

Commercial aircraft business remains under pressure

Boeing’s Commercial Airplanes division generated $10.7 billion in revenue during the quarter, down 3% year-on-year, and posted an operating loss of $697 million.

The company said results were affected by a less favourable mix of aircraft deliveries, rising costs linked to increasing production rates and ongoing supply-chain pressures.

Boeing nevertheless continued to make progress across its commercial programmes. The company said the 737 programme continues to progress towards a stabilised production rate of 47 aircraft per month.

The 787 Dreamliner remains at a production rate of eight aircraft per month. The company also said the 777X remains on track for first delivery in 2027.

Despite the challenges, Boeing delivered 161 aircraft during the quarter and 475 aircraft during the first nine months of the year. The company also booked 300 net orders, including deals with Turkish Airlines, Ethiopian Airlines and Lufthansa.

The commercial aircraft backlog now stands at more than 6,300 aircraft worth a record $612 billion.

Defence and services support recovery

Revenue at Boeing Defense, Space & Security rose 15% to $7.9 billion, with operating earnings increasing to $492 million. During the quarter, Boeing was selected by the US Navy to design, build and deliver the next-generation F/A-XX fighter aircraft, although the award has not yet been added to backlog figures.

Financial performance improves

Boeing reported a net loss of $116 million for the quarter, a significant improvement from the $5.3 billion loss recorded in the same period a year earlier.

The company generated free cash flow of $464 million and ended the quarter with $20.7 billion in cash and marketable securities.

In a message to employees released alongside the results, Ortberg acknowledged progress but said more work remained.

“Expectations are rising, and they should. We have a stronger foundation than a year ago, but we also have more work to do to deliver on our backlog, strengthen our culture, and improve how we work every day.”