Adds details on new airplane certification and China order commitment

By Dan Catchpole and Shivansh Tiwary

May 27 (Reuters) - Boeing BA.N is increasing 737 production to 47 jets a month, up from 42, after consulting with the Federal Aviation Administration, Boeing CEO Kelly Ortberg said on Wednesday.

"We're off and rolling at the 47 rate, and we should be there in the next couple months," Ortberg said at the Bernstein Annual Strategic Decisions Conference.

The company aims to move to 52 jets a month early next year, after opening a fourth 737 production line in Everett, Washington.

"I think the whole world's watching to make sure we make (rate) 47 and 52," Ortberg said.

A midair panel blowout on a nearly new 737 MAX in January 2024 revealed significant production quality problems at the U.S. planemaker and brought intense scrutiny from customers and the FAA, which capped 737 output at 38 a month. It removed the cap in October.

INCREASING PRODUCTION KEY AFTER LOSSES

Increasing 737 output is critical to Boeing's ongoing turnaround after years of crises that resulted in more than $35 billion in losses since 2019. In 2025 the company turned a profit thanks to the $10.6 billion sale of subsidiary Jeppesen, a digital aviation services provider, according to the company's financial filings.

Boeing's shares traded up about 4% in morning trading on Wednesday before settling back around the opening price.

Ortberg said Boeing has largely completed certification flight tests for the MAX 7 and 10, the narrowbody jet's smallest and largest variants. Certifying the two models and Boeing's new widebody 777-9 has taken several years longer than expected and been a significant drag on Boeing's earnings.

He said he is "pretty confident that we're not going to see any hiccups in the remaining phase of flight testing," referring to the 737 MAX engine anti-ice issue, a key factor behind certification delays for the MAX 7 and MAX 10 variants.

"The one area I guess I'd highlight where I haven't met my goals was getting the certifications complete on the new commercial airplanes" sooner, he said.

CHINA COMMITTED TO FUTURE ORDER

China committed to a future order of 200 Boeing jets earlier this month, during President Donald Trump's summit with Chinese leader Xi Jinping. It was Boeing's first large commitment from China in nearly a decade. Investors, though, had expected a larger order, and Boeing's share price traded down after the announcement.

"I think people focus a little bit too much on the initial quantity," Ortberg said on Wednesday.

China needs hundreds of new aircraft a year to support its economic growth, and this initial commitment should be followed by many more orders, he said.