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Report: Boeing to resume pre-crash monthly output rate of 737 jets in early 2020

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Report: Boeing to resume pre-crash monthly output rate of 737 jets in early 2020

Boeing Co. plans to raise back to pre-crash levels the monthly production rate of its 737 aircraft program in early 2020 and increase it further to a record pace later that year, Reuters reported, citing sources familiar with the matter.

The U.S. planemaker in April reduced the production rate to 42 jets per month from 52 as it focused on a software fix for the troubled 737 MAX jets, which remain grounded globally due to fatal crashes in March 2019 and October 2018.

Boeing said on an earnings call in July that it was planning to gradually increase the production rate and hit 57 jets per month in 2020.

According to Reuters, Boeing told more than 100 suppliers on July 30 that the monthly production rate will return to 52 aircraft in February 2020 and then climb to 57 in June 2020.

Boeing did not confirm that specific timeline but it maintained its monthly production target for next year. The company said the schedule reflects its timing assumptions for the 737 MAX aircraft's return to service, which depend on regulatory approvals in the U.S. and other countries.

"We continue to focus on safety and quality as we assess our production needs and work with our suppliers to ensure production system stability," Boeing said in an emailed statement. "Our objective is unchanged: a healthy and stable production system."

Boeing shares jumped following the Reuters report, trading 4.50% higher shortly before 2 p.m. ET.

Boeing swung to a loss in the second quarter as it recorded an after-tax charge of $4.9 billion due to "potential concessions and other considerations to customers for disruptions" caused by the 737 MAX groundings.