The American aircraft manufacturer has upped its monthly production plan to 38 planes from 31. The company expects to deliver upto 450 737 planes this year.
Boeing CEO Dave Calhoun has apologised to customers for the delay in delivery of its popular 737 Max aircraft after learning about a manufacturing issue in the aft fuselage section of the plane.
"The worst part of the notice of the defect that we got is the timing. It is right at the centre of their (airlines) summer schedules and we have to differ deliveries for that period, it costs some real money, so apologies to everyone, we are working very closely with them', Calhoun told CNBC in an exclusive interview.
Air India & Akasa Air are the two Indian airlines that have placed orders for the 737 Max aircraft and sources said their expansion plans are likely to be hit as Boeing reschedules deliveries.
Air India was expecting some 737 Max planes out of the 190 it ordered to be delivered this year itself.
Akasa Air too is awaiting 53 of the 72 aircraft it had ordered that are to be delivered by 2027.
But according to the Boeing CEO, these delays are for a short period and their annual delivery guidance is on track.
"We still believe we are within that guidance, we are clearly going to differ some things from the second quarter to third quarter & a bit to fourth quarter, but on balance we think we are in a pretty good shape to meet that guidance," he said.
The American aircraft manufacturer has upped its monthly production plan to 38 planes from 31. The company expects to deliver up to 450 737 planes this year.
"As demand surges across our markets, we must focus together on execution and meeting our customer commitments" the CEO told employees.
On the financial front, Boeing narrowed its losses in the first quarter to $425 million, much lower than the $1.2 billion loss it reported in the same quarter last year.
The company's sales jumped 28 percent year on year backed by strong aircraft demand worldwide. That boosted revenue in the commercial airplane unit rising 60 percent to $6.7 billion. Overall revenue stood at $17.92 billion in the March quarter.
Boeing has reiterated it expects to reach adjusted free cash flow for the year of between $3 billion and $5 billion.
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