Boeing To Cut Rates on 747-8 to 0.5 Per Month | Aviation International News

Boeing To Cut Rates on 747-8 to 0.5 Per Month

Blames slump in cargo market

Boeing now builds 747-8s at a rate of 1.3 per month. (Photo: Boeing)

By Gregory Polek • Senior Editor

January 21, 2016

Boeing announced Thursday that it will cut its production rate on the 747-8 program in half starting in September, from one airplane a month to 0.5. Plans already call for rates to drop from 1.3 per month to one per month starting this March. Boeing said the decision centers on a need to match supply with near-term demand in the cargo market. To account for the market and production effects, the company added that it will recognize a $569 million after-tax charge when it announces financial results for the fourth quarter of 2015 on January 27. The earnings charge will not affect 2015 revenue or cash flow, it said.

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