Boeing (NYSE:BA) +1.2% post-market Friday after the Federal Aviation Administration said it will allow the company to raise production of the 737 MAX, lifting an unprecedented production cap of 38 planes per month that was imposed in January 2024 after a door plug flew off a new Alaska Airlines jet in mid-flight.
Neither the FAA nor Boeing (NYSE:BA) disclosed the new production limit will be in their statements on the move, but Reuters reported FAA Administrator Bryan Bedford called CEO Kelly Ortberg to confirm the company could raise the rate to 42 planes per month.
The FAA said its safety inspectors “conducted extensive reviews of Boeing’s production lines to ensure that this small production rate increase will be done safely.”
Workers at the company’s Seattle-area factories reportedly have been preparing to boost the 737 production rate by adding equipment for greater capacity.
Last month, the FAA restored Boeing’s (BAA) ability to perform final safety inspections on the 737 MAX planes it builds and certify them for flight.
Separately, the International Association of Machinists and Aerospace Workers representing more than 3,200 striking Boeing (BA) workers said Friday it agreed to resume contract talks with the company on Monday.