Boeing and Airbus are intently focused on boosting production rather than securing new orders, as evidenced by statements from Boeing Commercial Airplanes CEO Stephanie Pope. Pope emphasized that demand is not an issue for Boeing, with a strong backlog of orders. The company's immediate priority is to stabilize the production rate of its best-selling 737 MAX at 47 aircraft per month, following regulatory approval in May, before gradually increasing it to 52 per month and then studying further rate hikes. This ramp-up is crucial for Boeing's financial recovery and its ability to compete with Airbus in the lucrative narrow-body market, where the A320 family has outsold the 737 MAX.
Increased output is also vital for Boeing to pay down its $26 billion net debt. Analysts like Tony Bancroft of Gabelli Funds highlighted that Boeing is "really driven on production rates." The company is also investing approximately $1 billion in a fourth 737 MAX production line in Everett, Washington, to provide additional capacity. Despite widespread supply chain disruptions and labor shortages, both manufacturers have accumulated order books extending well into the next decade.
The aerospace industry is experiencing a shift where air shows like Farnborough are generating fewer headline-grabbing orders. For example, the recent Farnborough Airshow saw a subdued order intake, with Reuters tallying 327 firm and preliminary aircraft orders for Boeing and Airbus combined, a figure well below the cycliical peak of 1,100 for the two manufacturers in 2014. Boeing edged Airbus with 173 aircraft orders compared to Airbus's 154.
The global order backlog reached 18,100 aircraft as of May 2026, according to the International Air Transport Association (IATA), representing more than half of the active fleet. Narrowbody production slots for the A320neo family and 737 MAX are largely unavailable until around 2033, and widebody slots are similarly constrained. This situation means airlines placing orders now are effectively securing aircraft for delivery in the early to mid-2030s, highlighting a production rather than a demand problem. IATA projects that the mismatch between airline capacity needs and manufacturer output will not normalize before 2031-2034.
