Boeing to slow 747-8 production due to weak cargo market

Boeing 747-8 Freighter

Boeing is to slow production of the 747-8 to 0.5 aircraft per month in September 2016 due to weakness in the cargo market.

The aircraft manufacturer had already announced it would cut production from 1.3 747-8s per month to one from March 2016. It says weak cargo recovery has slowed demand for the 747-8 Freighter.

Boeing vice chairman and president and Boeing Commercial Airplanes chief executive officer, Ray Conner says: “Global air passenger traffic growth and airplane demand remain strong, but the air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 Freighter.”

He continues: “While we remain confident in the 747-8’s unique value proposition and an upcoming replacement cycle for late-model 747-400 Freighters, we’re taking the prudent step to further align production with current market requirements.”

Boeing Commercial Airplanes says it will report a pre-tax charge of $885 million but will not affect the company’s 2015 revenue or cash flow. Boeing is to announce its fourth quarter results on 27 January.

Boeing executive vice president of business development & strategy and chief financial officer, Greg Smith says: “We are closely monitoring the air cargo market as we work to win additional orders to support future production. At the same time, we continue to aggressively drive productivity to lower costs across our production system to offset the current market challenges.”