Boeing will complete production of the iconic 747 in 2022, the company's president and CEO Dave Calhoun said on Wednesday.
"While our 767 and 747 rates remain unchanged, in light of the current market dynamics and outlook, we'll complete production of the iconic 747 in 2022," Calhoun said in a letter to employees, adding that the company will continue to support 747 operations and sustainment well into the future.
According to Calhoun, the pandemic's impact on the aviation sector continues to be severe. The pressure on commercial customers means they are delaying jet purchases, slowing deliveries, deferring elective maintenance, retiring older aircraft and reducing spend, "all of which affects our business and, ultimately, our bottom line. While there have been some encouraging signs, we estimate it will take around three years to return to 2019 passenger levels."
"Unfortunately, it's become clear that we need to make further adjustments based on the prolonged impact of COVID-19," he said. The changes include further lowering commercial airplane production rates.
The Boeing Company on Wednesday reported second-quarter revenue of 11.8 billion U.S. dollars, GAAP loss per share of 4.20 dollars, and operating cash flow of 5.3 billion dollars, primarily reflecting the impacts of COVID-19 and the 737 MAX grounding.
In Commercial Airplanes Programs, Boeing delivered a total of 20 aircraft in the second quarter of 2020. The delivery included two 777Fs to China Southern Airlines in May. The backlog included over 4,500 airplanes valued at 326 billion dollars.
"These past few months have been unlike anything we've seen. The pandemic's effect on our communities and industry is ongoing. And the challenges we face as a company are still unfolding," Calhoun noted.
