By Dan Catchpole and Shivansh Tiwary

May 27 (Reuters) - Boeing 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.

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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 from 2019 to 2024. Last year, the company turned a $2.2 billion 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 rose 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" for certifying the new 737 MAX engine anti-ice system.

"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.

Production of Boeing's twin-aisle 787 is back at eight a month ‌after dipping earlier this year due to delays with engines from GE Aerospace. Certification problems with new premium seats have slowed deliveries of completed 787s, too. Boeing still hopes to raise output to 10 per month later this year, as long as engine deliveries can keep up, Ortberg said.

The planemaker has not had customers ask to delay jetliner deliveries due to the Iran War and higher fuel prices. Instead, many customers have said they will take deliveries earlier if possible, Ortberg said.