Boeing raises aircraft prices more than 5%

Boeing Co. is raising aircraft prices by about 5.2%, the first increase in two years, and dropping the short-haul version of the 787 Dreamliner.

Higher costs for wages, goods and services are driving the boost, said Jim Proulx, a spokesman at Boeing’s commercial headquarters in Seattle. He confirmed the changes made to the price list on Chicago-based Boeing’s website Monday as well as the withdrawal of the 787-3 variant.

“If I were an airline, I’d be reading this as a message that Boeing thinks it can get higher prices because demand is rising and supply is limited, but you’ll still have the usual discussion over discounts,” said Rob Stallard, an analyst at RBC Capital Markets in New York. “Boeing and Airbus deeply discount to airlines, so theoretically they could raise list prices and boost the discounts, and it would all be the same.”

Boeing and larger rival Airbus are pushing production rates to records to work through a seven-year backlog of orders from carriers seeking to expand and refresh their fleets with more fuel-efficient jets. Demand is recovering this year after dipping in 2009 amid the recession.

The 787-3 was designed to carry as many as 330 passengers as far as 3,500 miles, compared with the 787-8’s top capacity of 250 people and 9,400-mile range.

Boeing shares fell 37 cents to $63.79.