Boeing’s CEO Kelly Ortberg announced that the company will resume airplane deliveries to China starting next month after a pause caused by trade tensions under the Trump administration. Previously, China had halted deliveries amid the ongoing trade war, but now the country has indicated it will accept new aircraft again. This development is significant for Boeing, a major U.S. exporter whose airplane sales to China had been stalled.
Ortberg Explains Tariff Impact, Optimistic On Trade Policies, Outlines 737 Max Production Goals
Ortberg addressed concerns about the effect of recent tariffs, explaining that Boeing has faced tariffs on imported parts for its wide-body Dreamliner planes, manufactured in South Carolina. These components come from countries like Italy and Japan. Despite this, the company can recoup many of these costs when the planes are exported. Ortberg emphasized that duties would mainly apply only when delivering planes to U.S. airlines, softening the overall impact of tariffs.
Boeing Reignites China Deliveries as Ortberg Targets Max Jet Growth and Tariff RecoveryRegarding the fluctuating trade policies, Ortberg expressed optimism, believing current tariffs and trade restrictions are unlikely to be permanent. He also outlined Boeing’s production goals for 2025, highlighting plans to increase the output of the bestselling 737 Max jets, contingent on Federal Aviation Administration (FAA) approval. The FAA had capped production last year after safety concerns, but Boeing aims to boost monthly production to 42 units midyear and potentially 47 later.
Boeing advances Max 7 and Max 10 certification amid recovery and industry challenges
Boeing is moving forward with certifying the Max 7 and Max 10 models, the smallest and largest in its narrow-body family, with certification expected by the end of the year. This comes after years of challenges, including two fatal crashes involving the Max jets, which hurt the company’s reputation and led to major safety overhauls. Ortberg’s leadership since August has been credited with stabilizing Boeing and improving its standing with airline customers.
Airline executives have welcomed Boeing’s progress under Ortberg, especially after enduring delivery delays during the post-pandemic travel surge. United Airlines CEO Scott Kirby praised Boeing’s turnaround but noted ongoing supply chain issues continue to limit plane deliveries industry-wide. Airlines had anticipated some delays by ordering excess aircraft to manage supply constraints, reflecting broader challenges in the aviation sector.
