Boeing Co ( BA ) shares are trading higher Tuesday following reports the company has resumed production of its 737 MAX aircraft after a lengthy halt caused by an employee strike. Here’s what you need to know.

What To Know: Boeing ( BA ) has restarted production of the 737 MAX jetliner about a month after a strike due to labor contract negotiations ended, according to Reuters. Boeing ( BA ) has not made an official announcement, but three sources familiar with the matter reportedly said production resumed on Friday.

The production halt had lasted approximately seven weeks as the strike involved 33,000 factory workers and stalled operations at a critical time for Boeing ( BA ). The planemaker relies heavily on sales of the 737 MAX, which is its best-selling model.

The report indicates that Boeing ( BA ) has around 4,200 outstanding orders for the 737 MAX from airlines seeking to meet rising global air travel demand. However, Boeing ( BA ) is currently limited to producing a maximum of 38 planes per month due to regulatory restrictions imposed by the Federal Aviation Administration (FAA).

These restrictions were introduced after a January 2024 incident where an Alaska Airlines 737 MAX 9 lost a door panel during flight, sparking critical safety concerns. The FAA has not indicated when the production cap might be lifted.

Analysts at Jefferies expect Boeing ( BA ) to produce an average of 29 737 MAX planes per month in 2025. The company faces challenges in reaching its long-term goal of increasing production to 56 planes per month due to supply chain issues, past safety incidents and heightened regulatory scrutiny.

BA Price Action: Boeing ( BA ) shares were up 5.18% at $165.12 at the time of publication, according to Benzinga Pro.

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