Boeing to cut 787 and 777 jet production
The company’s sales have tumbled 25 per cent to $11.81 billion in the quarter, missing estimates of $13.16 billion
Boeing is to cut production on its marquee 787 and 777 jet programs, delay ramp-up plans on the 737 MAX, and discontinue the 747 jumbo, as it reported a bigger-than-expected quarterly loss due to the pandemic.
Boeing also confirmed the last 747 – the iconic hump-topped jumbo jet that democratised global air travel in the 1970s but fell behind modern twin-engine aircraft – would roll out of its Seattle factory in around two years.
Boeing CEO Dave Calhoun said the Chicago-based company was working closely with airlines and suppliers to manage the downturn.
Boeing shares were up 2 per cent in premarket trade.
The company, which is also fighting with the 16-month-old ban on its 737 MAX after fatal crashes, said it would take longer to reach its monthly target of producing 31 units of the 737 MAX jets, missing its own expectations of achieving that in 2021.
Boeing now expects to gradually increase the 737 production rate to 31 per month by the beginning of 2022.
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The company said it would reduce 787 production to six jets a month next year – a third rate drop from a year ago.
Boeing also said it would again reduce the combined production rate of the 777 and 777X jets to two planes per month in 2021, while delaying the 777X’s entry into service by up to a year.
The company’s sales tumbled 25 per cent to $11.81 billion (£9.1bn, €10.05) in the quarter, missing estimates of $13.16 billion.
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