Boeing to end production of B747
Today, when announcing its 2nd quarter results, Boeing has confirmed it would delay the delivery of its first 777X until 2022. Also, Boeing has confirmed that 747 production would end in 2022.
The 787 production rate will be reduced to 6 per month in 2021. The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022. At this time, production rate assumptions have not changed on the 767 and 747 programs. Commercial Airplanes delivered 20 airplanes during the quarter, and backlog included over 4,500 airplanes valued at $326 billion.
The 737 program resumed early stages of production in May and expects to continue to produce at low rates for the remainder of 2020. The COVID-19 pandemic has significantly impacted air travel and reduced near-term demand, resulting in lower production and delivery rate assumptions. Commercial Airplanes expects to gradually increase the 737 production rate to 31 per month by the beginning of 2022, with further gradual increases to correspond with market demand.
The Boeing Company reported second-quarter revenue of $11.8 billion, GAAP loss per share of $4.20 and core loss per share (non-GAAP) of $4.79, primarily reflecting the impacts of COVID-19 and the 737 MAX grounding. Boeing recorded operating cash flow of $5.3 billion. Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737, including completion of FAA certification flight tests.
Dave Calhoun, Boeing CEO: “Unfortunately, it’s become clear that we need to make further adjustments based on the prolonged impact of COVID-19. The changes include further lowering our commercial airplane production rates:
