Feb 19 (Reuters) - Planemakers should make gains on jet
output in 2025 despite supply chain problems, and "tariff
whiplash" over changing U.S. announcements on duties, Howmet
Aerospace ( HWM ) CEO John Plant said on Wednesday.
Planemakers Boeing and Airbus have struggled
to meet production targets on new jets, despite healthy order
books and strong demand from airlines, flagging supply chain
snags and labor shortages. The U.S. planemaker is especially
trying to bring production of its strongest-selling 737 MAX jet
back to 38 a month this year after contending with multiple
crises that saw output slump in 2024.
"I do have optimism that we're going to break through
narrow body build and wide body build during this year," Plant
said at the Barclays Annual Industrial Select Conference.
"We can't keep talking about supply chain constraints
year after year. They have to be resolved, or maybe most of them
already are and maybe they are being used as a bit of a fig leaf
sometimes, here or there."
Earlier this month Howmet took a conservative outlook for
2025, with the castings giant forecasting better-than-expected
first-quarter revenue and profits on strong aircraft demand.
Plant said he is hopeful that Boeing ( BA ) will be able to return
to a regulatory-capped rate of 38 737 jets a month, and above.
Plant added that the company has been reacting to
changing tariff announcements from U.S. President Donald Trump,
who said
earlier this month
he would put 25% duties on Mexico and Canada only to give
both countries a temporary reprieve.
"I've got tariff whiplash," Plant said. "One day I face
left, the other day I face right."
He recalled how Howmet was working to put strategies in
place to address the 25% tariffs only to see the threat removed.
"That was a waste of time and effort and energy," Plant
said, adding that he is not complacent over reacting to the
prospect of tariffs.