Boeing CEO says supply chain issues are preventing an increase in 737 Max production.

Boeing CEO Dave Calhoun said on Monday that supply chain constraints will prevent the company from ramping up production of its best-selling 737 Max.

According to Calhoun, the company is currently producing 31 Max planes per month on average, and the company will focus on stabilising that rate before increasing output.

“Averages don’t serve customers well; predictability does.” “We have to be at 31 every month, consistently and predictably,” he said from the Farnborough Airshow outside of London to CNBC’s “Squawk Box.” “We’ll get into rate increases when they come, but the supply chain isn’t ready for it yet.”

Calhoun spoke shortly after Boeing announced an order for at least 100 737 Max 10 planes from Delta Air Lines, the airline’s first significant purchase from the company in more than a decade. Delivery is set to begin in 2025.

Longer-term constraints on aircraft production, according to Calhoun, are imposed by engine manufacturers such as General Electric and Raytheon Technologies unit Pratt & Whitney. He expects this to continue for the next 18 months.

Raytheon CEO Greg Hayes expressed similar concerns. “It’s really difficult,” he said earlier Monday on CNBC’s “Worldwide Exchange.”

He added that skilled labour is the most difficult to come by: “There are a lot of things we can’t get done because we don’t have the people.”

Hayes also predicted that the supply chain and labour shortage issues would persist until late 2023 or early 2024.

Boeing is set to report second-quarter earnings on July 27.

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