2 Min Read
NEW YORK (Reuters) - Boeing Co (BA.N) said on Tuesday it will cut production of its iconic 747-8 jumbo jet to 1.3 planes per month from 1.5 per month, starting September 2015.
The decrease means Boeing will produce two fewer airplanes per year, Boeing said. The cut is being made "because the near-term recovery in the cargo market has not been as robust as expected," Boeing said.
The production slowdown is not expected to have a material financial impact, Boeing said.
The company also indicated it remains committed to the plane. "We continue to believe in the long-term strength of the freighter market and the 747-8 is uniquely positioned to capture this demand," Boeing said.
The 747-8, a stretched and updated version of the two-deck, four-engine plane Boeing debuted in 1970, has attracted only 119 total orders since its 2005 launch, with 68 of those orders for cargo versions and the remainder for passenger jets, according to Boeing's website. It has delivered 80 of the planes and has 39 unfilled orders.
The production slowdown, which was first reported by the Wall Street Journal, will allow Boeing "to continue to run a healthy business with a minor change to our production rate," Boeing said.
Reporting by Alwyn Scott; Editing by Meredith Mazzilli