Safran Sees Boeing 737 MAX Production Regain Momentum, and More

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Engine Supplier Safran Optimistic On Boeing’s Renewed 737 MAX Production Drive

Boeing has regained production momentum on its 737 MAX program, with output now approaching the regulatory ceiling of 38 aircraft per month following a period of instability and regulatory scrutiny.

Safran, the key engine supplier through CFM International, confirmed Boeing's return to a more "dynamic" production mode, signaling renewed confidence after last year's door plug incident and subsequent FAA-imposed limits.

The company is focused on stabilizing this rate before seeking approval to increase output further.

Key Points

• Current 737 MAX production rate: Boeing is producing close to 38 aircraft per month, which is the FAA-imposed cap following the Alaska Airlines door plug incident in January 2024.

• Regulatory oversight: The FAA requires Boeing to demonstrate stable production and meet interim safety metrics before any increase above 38 units per month is authorized.

• Financial and operational recovery: Boeing lost nearly $12 billion in 2024 but is now seeing improved production stability, which is essential for restoring cash flow and market confidence.

• Supply chain and inventory: Safran reports a "three-digit" stockpile of LEAP-1B engines at Boeing, and Boeing has an inventory of 97 undelivered 737 MAXs, with some aircraft originally intended for Chinese carriers now being remarketed.

• Aftermarket and engine developments: Demand for engine aftermarket services is rising due to production delays, and CFM is advancing the RISE engine program, targeting a 20% reduction in fuel consumption and emissions.

Boeing aims to add a fourth production line once stability is demonstrated, and has ambitions to eventually reach 42 and then 52 aircraft per month, though this is contingent on regulatory approval and supply chain performance.

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