Boeing’s decision to boost 737 production comes just months after announcing a rate increase on the company’s best-selling commercial jetliner from 31.5 to 35 airplanes per month in early 2012.

“Increasing production is in response to customer demand for this airplane,” said Jim Albaugh, president and CEO, Boeing Commercial Airplanes. “Airlines want this innovative airplane sooner to renew their fleets to serve their customers.”

Key factors to the rate decision include the Boeing’s current backlog of more than 2,000 Next-Generation 737s, current options that customers are expected to exercise, and ongoing sales campaigns. The rate increase is not expected to have a material impact on 2010 financial results.

Next-Generation 737 customers have benefited from continuous innovation of the airplane since its introduction in 1997. The first five airlines will receive the new 737 Boeing Sky Interior by the end of this year. Customers will gain from a 2% reduction in the airplane’s fuel consumption by early 2012, through a combination of airframe and engine improvements.

Boeing’s long-term forecast of air traffic volumes and commercial airplane demand, projects a market of over 21,000 single-aisle airplanes over the next 20 years, accounting for an anticipated 69% of the airplanes delivered and an estimated 47% of the $3.6 trillion total market value.