Boeing suffered a heavy loss in the second quarter of 2020, due to the immobilization of air transport during the Covid-19 pandemic and the ban on the flight of its flagship 737 MAX. The company said in a statement Wednesday, July 29, that it plans to slow production rates even further.
The group, which had already planned to cut 16,000 jobs, also warned it would have to ” review the size of its workforce again ”, without giving details. David Calhoun, CEO of the aircraft manufacturer, commented:
“We are taking the necessary steps to ensure that we are well positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to be a better and more sustainable Boeing. Air transport has always proven its resilience, just like Boeing. “
End of production of the 747 in 2022
Group revenue fell 25% in the second quarter to $ 11.81 billion (10 billion euros), which is less than expected by analysts. The division manufacturing commercial aircraft (- 65%) suffered particularly while the division devoted to defense and space managed to stabilize its income.
The services division’s revenue fell 23%. Boeing’s net loss totaled $ 2.4 billion (2 billion euros). Adjusted per share, it stands at 4.79 dollars (4.1 euros), much more than the 2.57 dollars (2.2 euros) expected.
To adapt to the new air landscape, the group will only produce six 787 aircraft per month in 2021 compared to seven initially planned and ten currently, as well as two 777 and 777X aircraft per month in 2021 compared to three initially planned and five currently. Cadences do not change for the 767s and 747s, but the aircraft manufacturer has warned that in 2022 it will cease production of its legendary 747 aircraft, launched in 1970, and that airlines are gradually withdrawing from their fleets.
Boeing, which resumed production of 737s in the spring, also plans to increase production rates for the aircraft ” slower than expected ” and anticipates it will reach 31 devices per month in early 2022, up from 2021.
The 737 MAX has been banned from flight since March 13, 2019 after two fatal accidents that killed a total of 346. A recent spate of certification flights could portend its return to the skies, but Boeing has not given any new guidance on a specific timeline.