Boeing is increasing production of its best-selling 737 Max jet as travelers return to the skies and air carriers respond by growing their fleets, the airplane manufacturer said on Wednesday.
The aerospace and defense company plans to lift monthly production to 38 jets from 31 by the end of 2023, while generating $3 billion to $5 billion of free cash flow this year and delivering at least 400 single-aisle 737s and 70 widebody 787 Dreamliners.
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"We are well positioned to meet the operational and financial goals we set for this year and for the long term," Boeing CEO Dave Calhoun said in a statement.
"While we have more work ahead, we are making progress in our recovery and driving stability in our factories and the supply chain to meet our customer commitments," he added. "With demand strong, we’re steadily increasing our production rates across key programs and growing investments in our people, products and technologies."
Also on Wednesday, Boeing reported a free cash flow of $2.58 billion for the second quarter, compared with a cash burn of $182 million a year ago.
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The adjusted loss was 82 cents per share. Analysts polled by Refinitiv were expecting a loss of 88 cents per share. Boeing's revenue rose 18% to $19.75 billion, beating expectations of $18.45 billion.
The company took a total of $514 million in charges related to the space capsule Starliner after its launch was indefinitely delayed in June, as well as for supply chain costs on the T-7 training jet and a schedule delay for the MQ-25 tanker drone.
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Boeing shares are up nearly 18% since Jan. 1.
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Reuters contributed to this report.
