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Introduction

Sept. 18, 2017, © Leeham Co.: Boeing last week announced it will take the production rate of the 787 from 12/mo to 14/mo in 2019.

Boeing 787-9. Source: Boeing.

The decision to do so was couched in a strong backlog and strong forthcoming demand by CEO Dennis Muilenburg at a Morgan Stanley conference.

But analysts think the move is more about boosting free cash flow and hitting margins than it is about demand.

Summary

• Boeing sees demand surging from 2019 for widebodies generally and the 787 specifically.
• Muilenburg says Boeing is working “skyline” positions in 2019 and 2020 (LNC saw these years as already filled).
• Widebody jets hitting 25 years old early next decade.
• Airbus concurs.