The Boeing Co. says it will cut back the production rate for its 747 jets to one every two months and report an $885 million pre-tax charge against earnings, due to the slower-than-expected recovery of the air cargo market.
“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,” Ray Conner, Boeing vice chairman and president and CEO of Boeing Commercial Airplanes, said Jan. 21 in a news release.
He voiced confidence that business would pick up for the 747-8 jet as companies replace their older 747-400 freight airplanes, but said cutting back production was a “prudent step to further align production with current market requirements.”
Some observers were less sanguine about the 747’s prospects.
