Print edition: 
SEATTLE — Seeking to reclaim its title as the world's biggest commercial planemaker, Boeing will boost production of its largest jets to meet increasing demand as airlines recover from the recession-induced travel slump.
The manufacturing rate on the 777 will ramp back up to seven a month in mid-2011, instead of early 2012, Boeing said Friday. Output of the 747 jumbo jet will rise to two a month, from about 1 1/2, starting in mid-2012 instead of mid-2013, the company said.
Wichita-based Spirit AeroSystems is a major supplier for both planes.
"Obviously, we view that as a positive for the industry, for Boeing and for Spirit," said Spirit spokesman Ken Evans. "We will include that in our planning process and fully expect to be ready to support the customer's needs on both of those programs."
It's too soon to say whether the production increases will lead to new hiring, although Spirit isn't ruling it out.
"What this really does is move forward a schedule by about six months on both programs," Evans said.
"We're glad to see it."
Boeing's move comes less than a year after it decided to cut 777 production and delay 747 increase plans amid order cancellations and deferrals from airlines that couldn't find financing for new planes.
Boeing on Friday repeated a forecast that airlines will return to profitability in 2011, boosting demand for planes by 2012.
Global traffic rose in January after last year's drop in demand, which was the worst since World War II, according to the International Air Transport Association.
"Market improvement and our conservatively managed approach to production have put us in a position where we see it necessary to raise aircraft output," Jim Albaugh, president of the commercial-planes division, said in the statement.
Boeing on Friday "pointed to a pick-up in demand in the cargo and Asian markets in particular as being the stimulus for this accelerated increase in the 777 build rate," wrote Rob Stallard, an analyst with Macquarie Capital. Stallard said he was "surprised to see this move coming so quickly."
Albaugh said earlier this month that he was considering raising production rates and would make a decision in April on the wide-body 777 and in mid-year on the single-aisle 737, the world's most widely flown airliner, which was built at a record rate last year. The company has to give suppliers enough time to adjust their own production before changes to the aircraft delivery schedules can be implemented, and lead times for some parts can stretch to two years.
Boeing said in April 2009 that it would cut output of the $246 million 777 jet to five a month this June and delay planned increases on the 747 and 767 programs. That move led to a charge of 38 cents a share. The accelerated production increases announced Friday aren't expected to have a material effect on 2010 financial results, Boeing said.
France-based Airbus, which has surpassed Boeing in deliveries every year since 2003, said March 9 that it would raise its production rate on A320 single-aisle jets in December to 36 a month, from 34, after cutting output last year.
Albaugh said that same day that he wanted to reclaim the top delivery spot by next year, when shipments should be buoyed by the new 787 Dreamliner. In 2009, Airbus — a unit of European Aeronautic, Defence & Space Co. —handed over 498 jets compared with Boeing's 481.
Boeing and Airbus said at the Paris Air Show in June that they were urging suppliers to keep their assembly lines ready to respond quickly to increased demand even as industry analysts, aircraft lessors and IATA all predicted that the planemakers would have to cut production further.
