UPDATE 2-Boeing to raise 787 jet output, upbeat on 777

UPDATE 2-Boeing to raise 787 jet output, upbeat on 777
From Reuters - September 13, 2017

(Reuters) - Boeing Co (BA.N) will raise production of 787 Dreamliner jets to 14 a month in 2019, Chief Executive Dennis Muilenberg said on Wednesday, reviving plans previously on hold due to a wobble in demand for wide-body jets.

Boeing shares rose as much as 1.20 percent.

The increase in output from 12 a month comes as Boeing also voiced confidence that production rates for its older 777 have stopped falling and signals its faith in rebounding wide-body demand.

Based on existing backlog, were confirming now that we are going to build 14-a-month production rate in 2019, Muilenberg told a Morgan Stanley conference.

We expect to add 100 airplanes to the 787 (accounting) block. That will factor in to the financials and is accretive to our margins.

Boeing earlier struck a preliminary deal to sell eight 787s to Malaysia Airlines..

Muilenberg said Boeing had also just grabbed an order for six 777 aircraft, whose output has been slowing as Boeing prepares to introduce an upgraded model from 2020.

The order, to be announced on Thursday, increases Boeings confidence about filling remaining production slots during the transition to the new 777X, he said.


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