Boeing Chief Executive Officer Kelly Ortberg stated that the company is falling behind schedule on the certification of its new 777X aircraft, as reported by Bloomberg. Speaking at a Morgan Stanley conference, Ortberg said that while there are no new technical issues with the aircraft or its engines, there remains a "mountain of work" to complete.
The company's falling behind on its certification timeline is a delay that could have significant financial implications. Despite these setbacks, Boeing still plans for the 737 MAX 7 and MAX 10 variants to be certified in 2026.
Amid the challenges, Ortberg maintained the company's production goals. Boeing still plans to produce 42 of its 737 MAX aircraft per month by the end of the year, stating that it has the necessary inventory to support this rate increase. The company is also moving forward with a "mini rate increase" for its 787 Dreamliner, targeting a production rate of 8 per month in the near future and aiming for 10 per month next year.
Financially, Ortberg offered a positive outlook as well. He affirmed the company's free cash flow guidance for the third quarter and expressed optimism about generating positive free cash flow in the fourth quarter. He also commented that an ongoing labour strike is not expected to be "too impactful" on the company's finances.
Ortberg noted that the company's internal “rework KPI” remains “not quite green” but is showing progress. On a strategic note, he said that Boeing continues to study smaller divestitures, following the recent sale of Jeppesen.
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