Boeing 737 recovery plan 'taking hold' after factory snarl: CEO

SEATTLE (Reuters) – Boeing expects to deliver roughly as many 737 narrowbody jetliners in September as the company delivered in August as it works to bounce back from a manufacturing logjam triggered by supplier delays, its chief executive officer said on Wednesday.

The Boeing logo is pictured n Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker

Boeing’s August delivery of 48 narrowbody aircraft, announced on Tuesday, were an improvement from the 29 delivered in July, which was one of its lowest monthly tallies in years.

“Our recovery actions are taking hold,” Boeing Chief Executive Officer Dennis Muilenburg told a conference in California. “You’ll probably see September deliveries will be roughly where August was, maybe a little bit better.

“As we get into the fourth quarter, you will see deliveries getting above the 52 per month production rate,” he added.

Boeing’s hot-selling 737 and Airbus’ A320 family of single-aisle jetliners are the cash cows of the two aircraft makers, the world’s largest.

The snarl at Boeing’s Seattle-area narrowbody plant, fueled by shortages of engines and fuselages as Boeing sped production to record levels in June, is likely to hurt third-quarter results and threatens to hinder its efforts to boost build rates again in 2019, some analysts said.

Reporting by Eric M. Johnson in Seattle; Editing by Chizu Nomiyama and Bernadette Baum

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