Boeing Raises Prices On Jets By An Average Of 5.2%

CHICAGO (AP) — Boeing Co. said it is raising prices on its jets by an average of 5.2 percent, and that it is no longer offering a shorter-range version of its new 787 jet.

Boeing had said in January that it was reevaluating plans for the shorter-range 787-3 after the only customer for that variant switched its order to other Boeing jets.

The price increases include a 5 percent increase for its popular 787-8, bringing it to $185.2 million. Customers have ordered 847 of the new 787s, even though none have been delivered yet.

Boeing customers usually get discounts from the list prices posted on its website, but they're still a barometer of the direction of its pricing. Its last price increase was in 2008.

Both Chicago-based Boeing and competitor Airbus of Europe are increasing production of their most popular jets. For Airbus, that's the A320, which it aims to produce at a rate of 40 per month by 2012. Boeing is raising production of its 737 to 38 planes per month by mid-2013. Boeing is also speeding up production of its 777.

Boeing shares rose $1.06 to $64.85 in midday trading Tuesday.