Boeing resumes production of 737 Max aircraft following the workers’ strike.

Boeing has resumed manufacturing its popular 737 Max aircraft for the first time since a massive strike involving 33,000 employees that lasted seven weeks and concluded in early November.

The company announced on Tuesday that production operations had recommenced at its Renton, Washington facility, following a comprehensive training process for workers and the identification and rectification of various potential issues.

As a result of this announcement, Boeing’s stock experienced a notable increase of 4.5%, marking its most significant single-day rise in nearly four months.

In recent years, the production and delivery of both the 737 Max and the 787 Dreamliner have faced numerous interruptions due to identified manufacturing defects.

Boeing commented that their team has methodically worked towards restarting their manufacturing operations in the Pacific Northwest, successfully resuming the 737 production at the Renton facility, while plans for Everett, Washington operations are also on track to follow in the coming days.

Boeing’s 777 and 767 jets are manufactured in Everett, which is located north of Seattle.

Additionally, the company reported securing orders for 49 aircraft in the month of November, although it also announced the loss of an order from U.K. airline TUI for 14 Max jets. In terms of deliveries, Boeing sent out 13 planes, a sharp decline from 56 delivered in the same month a year ago.

Since the incident in January involving a door plug that detached from a Max operated by Alaska Airlines, the Federal Aviation Administration has imposed a production cap of 38 Max jets per month. Boeing is actively working to demonstrate to regulators that it has resolved ongoing quality and safety concerns, with hopes of increasing the production capacity to 56 jets per month.

Boeing has been in a financial downturn since 2019, when two tragic crashes of the Max aircraft resulted in the loss of 346 lives. The company is in urgent need of revenue from new plane deliveries to recover from its significant financial struggles.

In response to these challenges, the newly appointed CEO, Kelly Ortberg, has unveiled plans to reduce the workforce by about 17,000 employees and to issue new stock to generate cash in a bid to prevent the company’s credit rating from falling into a junk status.