Boeing announces another cut to 747-8 production rate

Boeing announced (18-Oct-2013) it has reduced the production rate of the 747-8 from 1.75 aircraft to 1.5 per month due to lower market demand for large passenger and freighter aircraft. Boeing stated the production adjustment better aligns it with near-term demand while stabilising the production flow and "better positions the programme to offer the 747-8′s compelling economics and performance when the market recovers." Boeing stated small adjustment to the production rate, "doesn't change our confidence in the 747-8 or our commitment" to the 747-8 programme. The company forecasts demand for 760 large aircraft such as the 747-8 over the next 20 years. Boeing expects the air cargo market will begin to return to its long-term average growth rates during 2014. Boeing has delivered 56 747-8s, and has a firm order backlog for 51 aircraft, covering both passenger and cargo versions. Boeing cut production from 12 per month to 1.75 per month in Apr-2013. The first delivery at the new production rate is expected in early 2014. The production rate change is not expected to have a significant financial impact. [more - original PR]