American planemaker Boeing is cutting its 787 Dreamliner production again, making this the fourth adjustment in 18 months. The company posted zero deliveries for the month of November, with only four deliveries taking place in October. Recent production issues have further affected Boeing’s ability to deliver the new jets.
From six down to five
Boeing also told Simple Flying that its Chief Financial Officer Greg Smith said,
“And as we’re transitioning to that lower rate between now and May 2021, we’re going to see the effective production rate be below 10 for that period of time.”
This fourth cut going from five to six is a relatively small reduction, comparing it to the mid-2019 rate of 14 a month, and shows just how much things have changed for the company. This will not take effect immediately as the cut will take place by mid-2021. Boeing executives have made it clear that many of its aircraft remain undelivered. At a Credit Suisse conference, the following remark was made:
“We’ve got a large number of undelivered 787 aircraft,” – Greg Smith, Chief Financial Officer, Boeing via Reuters
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Smith adds that international passenger traffic is still the hardest hit segment of air travel, remaining about 90% below 2019 levels at this time last year. He said that this has affected the overall near-term demand for the widebody markets.
When do you think Boeing will increase its production rates again? Will it be before 2025? Let us know what you think in the comments.