Boeing Co. (NYSE: BA) announced Thursday morning that it will increase production of its 737 aircraft from a current rate of 42 planes a month to 52 planes a month in 2018. The company had already announced an increase to 47 planes a month beginning in 2017.

This is not a big surprise. We noted back in August that a production increase beyond 47 planes per month was likely to be announced by the end of the year. Thursday’s announcement comes a bit earlier than expected is all.

In an investor letter from mid-August, Canaccord Genuity expressed concern that a 737 production rate of more than 50 a month may not be sustainable. And not only for Boeing, but for rival Airbus and its almost certain move to match Boeing’s announcement with one of its own regarding the production rate of its competing A320 aircraft.

John Leahy, who is the chief salesman for Airbus, commented to Aviation Week on the Boeing plan before it was even announced:

Three airlines tell us they’re going to improve their market share by 10-15%. But someone is going to be very successful, someone very unsuccessful and someone in the middle. So two or three don’t need all the planes they ordered. … What worries me is this whole “Field of Dreams” concept: Build it and they will come.

ALSO READ: Boeing’s 20-Year Forecast Tops Airbus

Leahy might consider taking his own advice. Airbus is considering raising its production rate for the A320 from 42 to 50, which Leahy says is no problem currently, but he admits he’s not sure about what demand will be like seven or eight years in the future.

For its part, Boeing’s marketing vice-president for commercial aircraft said, “Our thorough analysis tells us the single-aisle market continues to expand and is the fastest growing, most dynamic segment of the market.” Boeing has projected a requirement for 25,000 single-aisle planes like the 737 and A320 over the next 20 years. Airbus estimates demand for the narrow-body planes at around 22,000 for the same 20-year period.

UBS analysts anticipate a rough balance of supply and demand for narrow-body planes until 2018. At 52 per month for the 737 and a potential 50 per month for the A320, the two companies will build 1,224 narrow-body planes, well above the total 1,019 delivery forecast from UBS for 2018.

The other thing to keep in mind about aircraft purchases is that easy financing in the past couple of years has been a key to sales growth. Another driver has been high fuel prices. We noted the recent drop in jet fuel prices, and if low prices show signs of sticking, orders for more fuel-efficient planes could be cancelled.

Boeing’s shares traded down about 0.2% in the early afternoon on Thursday, at $124.38 in a 52-week range of $113.34 to $144.57. Volume was light though on another down day for the market.

ALSO READ: Why a Boeing 737 MAX Costs up to $113 Million

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