July 29 (Reuters) - Boeing ( BA ) reported a smaller

second-quarter loss on Tuesday as the U.S. planemaker ramped up

jet production and deliveries, recovering from a quality and

regulatory crisis and a major strike that halted most production

last year.

After years of grappling with quality issues and production

delays on its flagship 737 MAX, Boeing ( BA ) has cautiously ramped up

monthly output this year. In May, the company produced 38 737s.

Production has been stable since then, according to the company.

"As we continue to execute our Safety & Quality Plan,

there's more stability in our operations," CEO Kelly Ortberg

said in a letter to Boeing ( BA ) employees on Tuesday.

The U.S. Federal Aviation Administration had capped the

production of Boeing's ( BA ) best selling 737 MAX jets following a

mid-air panel blowout in a nearly new jet in January 2024.

"We plan to seek FAA approval to increase to rate 42 when

our key performance indicators (KPIs) show that we're ready,"

Ortberg added.

It has delivered 206 737 MAX jets through the first half of

the year. Wall Street closely tracks aircraft deliveries,

because planemakers collect much of their payment when they hand

over jets to customers.

Boeing ( BA ) also increased 787 production at its plant in

Charleston, South Carolina, from five aircraft a month to seven

a month.

Through the first half of the year, the planemaker has

booked 668 orders, or 625 net orders after cancellations and

conversions.

An improvement in deliveries marks a pivotal step in

Boeing's ( BA ) effort to rebound from years of production disruptions

and crises that piled on debt, highlighting the urgency of

accelerating output to restore financial stability.

The planemaker posted a net loss of $612 million, or 92

cents per share, for the quarter through June, compared with

$1.44 billion, or $2.33 per share, a year earlier.

However, the planemaker continues to face pressure from

supply chain disruptions that have delayed production and

limited its ability to meet surging aerospace demand. It posted

a loss of nearly $12 billion in 2024 due to challenges across

its major business units including charges on its defense

programs.

It also remains exposed to U.S. President Donald Trump's

sweeping tariffs, which could increase parts costs and further

strain an already fragile supply chain.

(Reporting by Shivansh Tiwary in Bengaluru and Dan Catchpole in

Seattle; Editing by Saumyadeb Chakrabarty)