Boeing will resume airplane deliveries to China next month after a pause due to the U.S.-China trade conflict, as confirmed by CEO Kelly Ortberg during a recent Bernstein conference. Ortberg noted that China has indicated its readiness to accept deliveries again. Boeing, a significant U.S. exporter, has faced tariffs on imported components for its Dreamliner aircraft, although much of these costs can be reclaimed upon export. He mentioned that the only tariffs to be absorbed would be for domestic deliveries.
Despite the ongoing uncertainties in trade policies, Ortberg expressed confidence that current disruptions are not likely to persist long-term. He also announced plans to increase production of the 737 Max jets, pending Federal Aviation Administration (FAA) approval. Last year, FAA restrictions limited production to 38 jets per month after a safety incident; however, Ortberg expects to ramp up to 42 jets per month by mid-year and potentially reach 47 by the end of the year.
Additionally, Boeing’s long-awaited Max 7 and Max 10 variants are expected to receive certification by year-end. Ortberg’s leadership, since assuming the CEO role in August, has been positively received by industry leaders, particularly in light of prior delays that adversely affected airlines amid a post-pandemic surge in travel demand. United Airlines CEO Scott Kirby noted that supply chain challenges continue to impact overall aircraft deliveries, acknowledging Boeing’s strides toward resolving operational issues. Kirby expressed optimism that Boeing has “turned the corner” in addressing these challenges and restoring its reputation.
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