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| Boeing to cease 747 production as losses hit $2.4bn | Boeing to cease 747 production as losses hit $2.4bn |
| (32 minutes later) | |
| Boeing has said it will stop making its classic 747 plane as one of a series of changes it has announced in the face of massive losses. | Boeing has said it will stop making its classic 747 plane as one of a series of changes it has announced in the face of massive losses. |
| The company said production of some other planes, including the troubled 737 Max, will be slower than expected. | The company said production of some other planes, including the troubled 737 Max, will be slower than expected. |
| Boss Dave Calhoun said the firm is also looking at job cuts on top of the 10% reduction in staff already announced. | Boss Dave Calhoun said the firm is also looking at job cuts on top of the 10% reduction in staff already announced. |
| "The reality is the pandemic's impact on the aviation sector continues to be severe," he said. | "The reality is the pandemic's impact on the aviation sector continues to be severe," he said. |
| As the coronavirus has devastated air travel, airlines around the world have responded by reducing their fleets and delaying or cancelling aircraft orders. | As the coronavirus has devastated air travel, airlines around the world have responded by reducing their fleets and delaying or cancelling aircraft orders. |
| This month British Airways became the latest to say it was retiring all of its 747 jets - about 10% of its fleet - citing the fall in passenger demand. Australian airline Qantas is among the other firms retiring the jet, which marked its 50th anniversary last year. | This month British Airways became the latest to say it was retiring all of its 747 jets - about 10% of its fleet - citing the fall in passenger demand. Australian airline Qantas is among the other firms retiring the jet, which marked its 50th anniversary last year. |
| The pandemic has exacerbated the crisis facing Boeing, which was already in trouble following two fatal crashes of its 737 Max plane. | The pandemic has exacerbated the crisis facing Boeing, which was already in trouble following two fatal crashes of its 737 Max plane. |
| The jet has been grounded since last March, costing the company some $20bn. The scandal led to the ouster of top executives and a string of ongoing investigations. | The jet has been grounded since last March, costing the company some $20bn. The scandal led to the ouster of top executives and a string of ongoing investigations. |
| Boeing said it has re-started production of the 737, but it expects the rate of manufacturing to remain low for the foreseeable future as the virus weighs on the industry. | Boeing said it has re-started production of the 737, but it expects the rate of manufacturing to remain low for the foreseeable future as the virus weighs on the industry. |
| It said it hoped to be making 31 per month by the beginning of 2022 - instead of during 2021 as planned. That would be roughly half the rate of the firm's production before the grounding. | It said it hoped to be making 31 per month by the beginning of 2022 - instead of during 2021 as planned. That would be roughly half the rate of the firm's production before the grounding. |
| "While there have been some encouraging signs, we estimate it will take around three years to return to 2019 passenger levels," Boeing said. | "While there have been some encouraging signs, we estimate it will take around three years to return to 2019 passenger levels," Boeing said. |
| Falling sales | |
| Boeing said it lost $2.4bn in the three months to 30 June, as sales fell 25% to $11.8bn. | |
| The sales decline was driven by its commercial unit, which serves passenger airlines. Revenue dropped 65% as the firm delivered just 20 planes in the quarter, compared to 90 a year ago. | |
| Sales in the firm's defence, space and security unit were essentially flat at $6.5bn. | |
| Boeing said the slowdown may mean deeper job cuts on top of the roughly 16,000 layoffs already planned. | Boeing said the slowdown may mean deeper job cuts on top of the roughly 16,000 layoffs already planned. |
| "Our government services, defence and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities," Mr Calhoun said. | "Our government services, defence and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities," Mr Calhoun said. |
| "We are taking the right action to ensure we're well positioned for the future." | "We are taking the right action to ensure we're well positioned for the future." |