Confirmed: Boeing will close Boeing 747 production and postpone 777X first delivery to 2022

Boeing today reported their second-quarter results of 2020. In the second quarter, Boeing restarted production operations across key sites following temporary pauses to protect its workforce and introduce rigorous new health and safety procedures.

The company also resumed early stages of production on the 737 programme with a focus on safety, quality and operational excellence. Boeing also completed the FAA certification flight tests for the 737 MAX recently. The 737 programme resumed early stages of production in May and expects to continue to produce at low rates for the remainder of 2020. Boeing now intends to target a gradual increase to 31 per month by the beginning of 2022.

Boeing’s Everett Facility

Boeing Commercial Airplanes delivered 20 airplanes during the quarter, and backlog included over 4,500 aircraft valued at $326 billion. To align with the sharp reduction in commercial market demand in light of COVID-19, the company is further adjusting commercial airplane production rates and reducing employment levels.

Boeing 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 787 production rate will be reduced to 6 per month in 2021. This is an adjustment down from the reduction announced last quarter to 10 per month currently and seven per month by 2022. With this lower rate profile, Boeing will also evaluate the most efficient way to produce the 787, including the feasibility of consolidating production in one location.

The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022. This is one unit lower per month than what was announced last quarter by Boeing.

Boeing Earning Call

Rendering 777-9X; 777-8X; Both Planes together; View from lower Starboard – right side; Air to Air; Over Clouds Blue Boeing Livery; K66735

Boeing, in an internal note to employees, has also announced that they will complete production of the iconic 747 in 2022.


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