Announcement of the Production Increase
The announcement of a production increase at Boeing led to a significant rise in stock prices on Thursday. The aircraft manufacturer’s stock rose by up to 5.4 percent during trading, reaching a peak of about $212, the highest level since early February of last year. Most recently, an increase of about 2.3 to 2.62 percent was reported, with the price around $206.79.
Background of the Announcement
The announcement was made by CEO Kelly Ortberg at an investor conference. Boeing plans to increase the production of the 737 Max model to 47 units per month by the end of the year. This increase in production targets has exceeded investor expectations and positively surprised analysts such as Gavin Parsons from UBS.
Importance for Boeing
The return to a higher and stable production rate is crucial for Boeing to work through its order backlog and offset years of financial losses. Boeing has been working for months to increase the pace in its factories and improve quality after years of turbulence and delays. The crashes of two 737 Max aircraft in 2018 and 2019 had significant impacts on the company.
Market Development and Investor Interest
The positive reaction of the stock to the announcement shows that investors are responding to the improved production forecast and placing confidence in Boeing’s future. Increasing production could help improve the company’s financial stability in the long term and strengthen its competitiveness in the market.