BA Boeing Co

By Doug Cameron 

Boeing Co. said it will resume limited production of its wide-body commercial jetliners in the Seattle area on April 20 after a three-week shutdown triggered by travel restrictions linked to the coronavirus pandemic.

The plane maker said Thursday that it also planned to prepare for a restart of the production line for its 737 MAX, which was idled in January as Boeing awaits regulatory approval for fixes to the jet. The MAX has been grounded globally since last year following the second of two fatal crashes.

Boeing didn't detail what production rates it will target in a restart that comes against the backdrop of a collapse in air travel that has forced airlines to ground two-thirds of the global fleet and prompted cancellations from its own order book. Rival Airbus SE last week said it would cut production rates by a third.

Boeing shares rose more than 7% in after-hours trading on Thursday.

The Chicago-based company suspended all commercial and military aircraft production in the Puget Sound region last month in response to virus-related work and travel restrictions, and expanded the suspension to a plant in South Carolina that makes 787 Dreamliner jets.

Boeing resumed work on military versions of its jetliners this week, bringing back 2,500 staff. Another 27,000 will return as it spools up commercial output. The South Carolina plant will remain closed.

The resumption of military production will help bolster Boeing's cash balances as the Pentagon and other customers complete payments for finished aircraft.

Analysts have already trimmed forecasts for commercial deliveries this year to between 100 and 200 jets, though airlines continue discussions about restructuring orders and deferring deliveries.

Write to Doug Cameron at doug.cameron@wsj.com

(END) Dow Jones Newswires

April 16, 2020 18:29 ET (22:29 GMT)

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