Boeing Confirms 747 Production Will End in 2022, Delays 777X Entry to 2022, Reduces 787 & 777 Production

Boeing has announced several changes to production after a massive loss.



Boeing reported a net loss of $2.4 billion for the second quarter of 2020. In comparison, the lost $641 million in the first quarter of 2020.

In order to meet low levels of demand for the next few years, Boeing has chosen to slash production of some aircraft:

  • The 747 production line will officially end in 2022. Boeing will continue to support existing 747 operators into the future.
  • The 777X’s first delivery is now targeted for 2022 instead of 2021
  • The combined 777 and 777X production will be two per month instead of three in 2021.
  • 737/737 MAX production will gradually increase slower with 31 aircraft per month by 2022 instead of 2021.
  • 787 production will reduce to six per month in 2021 (increasing to seven by 2022, overall down from 14 per month).
  • Boeing studies consolidating 787 production to one location (Everett/Charleston).
  • 767/747 production rates remain unchanged.

Additionally, AerCap just cancelled 15 737 MAXs, so there’s another hit to Boeing

Sources/Image

Announcements:
https://boeing.mediaroom.com/news-releases-statements?item=130713
https://boeing.mediaroom.com/2020-07-29-Boeing-Reports-Second-Quarter-Results

Image: https://www.airplane-pictures.net/photo/127116/n6067e-boeing-company-boeing-747-8/

Unfortunately, with COVID-19 causing air travel demand to plummet, these cuts are needed to meet demand. Farewell to the 747 after over 50 years of production.

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RIP Queen of the skies, although somewhen you will also be gone from the skies, your memory and legacy will stay alive forever.

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Heck off, corona.

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It might end in 2022

image

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this makes me sad

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Yea it does:😞 make all of us sad

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In all fairness 747 production was probably gonna end in 2022 regardless. Unless a few more cargo orders tricked in it wasn’t going to have any to make after 2022. 787 and 777 production slow downs were also probably pretty inevitable since both were well past there backlog and were just maintaining new orders so to speak. Besides that really isn’t bad news, it’s pretty normal for any airliner to get the bulk of its orders in the first few years and be produced furiously till that is cleared then slow down, and in the 777s case continue to slow down as fewer orders are coming in late in the types life span. All be it thanks to COVID those slow downs are lever than usual. 777X even two was probably already gonna fall behind because of already mounting delays, and the company focusing on the 73M. I can’t deny that coronavirus has a part to play in all of these, but they were all probably inevitable.

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Bad news for Boeing, I hope these changes will help

777X delay: Big sad
787 and 777 reduction: Bigger sad
747 stopping production: Biggest of sads ;(

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Interestingly, there were no “abnormal” items in the total loss. They recorded an additional ~500 million in expected future payments to 737 MAX but did not record additional charges to the 737 MAX and 787 programs as a result of COVID-19.

As the 777X comes online and starts incurring its own deferred production costs, Boeing is going to have to take a long hard look at their deferred production/tooling costs (currently totalling ~23.28 Billion across the MAX, 787, and 777X) and see if they can actually make that money back.

Given that Long-haul travel is not projected to recover until 2024 and a long-haul aircraft product lifecycle of around 20 years, Boeing may have to take a charge on those amounts soon.

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