Today, when announcing its 2nd quarter results, Boeing has confirmed it would delay the delivery of its first 777X until 2022. Also, Boeing has confirmed that 747 production would end in 2022.
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The 787 production rate will be reduced to 6 per month in 2021. The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022. At this time, production rate assumptions have not changed on the 767 and 747 programs. Commercial Airplanes delivered 20 airplanes during the quarter, and backlog included over 4,500 airplanes valued at $326 billion.
The 737 program resumed early stages of production in May and expects to continue to produce at low rates for the remainder of 2020. The COVID-19 pandemic has significantly impacted air travel and reduced near-term demand, resulting in lower production and delivery rate assumptions. Commercial Airplanes expects to gradually increase the 737 production rate to 31 per month by the beginning of 2022, with further gradual increases to correspond with market demand.
The Boeing Company reported second-quarter revenue of $11.8 billion, GAAP loss per share of $4.20 and core loss per share (non-GAAP) of $4.79, primarily reflecting the impacts of COVID-19 and the 737 MAX grounding. Boeing recorded operating cash flow of $5.3 billion. Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737, including completion of FAA certification flight tests.
Dave Calhoun, Boeing CEO: “Unfortunately, it’s become clear that we need to make further adjustments based on the prolonged impact of COVID-19. The changes include further lowering our commercial airplane production rates:
- We will have a slower ramp-up in 737 production than previously planned, with a gradual increase to 31 per month by the beginning of 2022.
- We will reduce the combined 777 / 777X production rate to two per month in 2021, which is one unit lower per month than we announced last quarter.
- We will further reduce 787 production to 6 per month in 2021. This is an adjustment down from the reduction we announced last quarter to 10 per month currently and seven per month by 2022. With this lower rate profile, we will also need to evaluate the most efficient way to produce the 787, including studying the feasibility of consolidating production in one location. We will share more with you following our study.
- 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. Our customer commitment does not end at delivery, and we’ll continue to support 747 operations and sustainment well into the future.”
BREAKING: Boeing confirms end of 747 production in 2022. Will reduce 787 rate to 6 per month in 2021 and will study consolidation to single Everett or N Charleston line. 737 Max output scales back to 31/mo in 2022 and 777/777X to 2/mo in 2021.
— Jon Ostrower (@jonostrower) July 29, 2020