Boeing has planned to stop production of the Boeing 747 Jumbo Jets for good after the manufacturer completes the production of the last 15 aircraft currently on order.
During the second-quarter results announcement, Boeing confirmed the end. In an open letter to employees, Boeing’s CEO Dave Calhoun advised that no more 747s will be built after 2022.
Calhoun also said that the firm is also looking at job cuts on top of the 10% reduction in staff already announced.
On July 29, 2020, Boeing announced a loss of $2.3 billion in second quarter this year and a decrease in production rates for several popular models, including the Boeing 787 and the 777.
The last Boeing 747-8 will roll out of the Everett, Washington plant in about two years, ending the more than five-decade production run of the legendary airplane known as the Queen of the Skies.
In a letter sent to employees, CEO Calhoun said that the manufacturer will complete the production of the iconic 747 in 2022, in light of the current market dynamics and outlook. However, he said that the 767 and 747 rates remain unchanged.
The manufacturer has not received any new orders for the passenger variant of 747-8. Boeing has only 15 unfilled orders to date, all for the B747-8 freighters. United Parcel Service (UPS) has 12 of these.
However, the Boeing 747 will still remain in the skies for decades, as it has become increasingly popular among cargo airlines. Only three airlines, Air China, Korean Air and Lufthansa operate the latest B747-8 passenger models.
Boeing’s “Queen of the Skies” debuted back in 1970, a gamble paid off and transformed travel but almost bankrupted the company. The Boeing 747 went on to rack up 1,571 orders over the decades — second among wide-body jets only to Boeing’s 777.
According to Jefferies analyst Sheila Kahyaoglu, Boeing has lost about $40 million for each 747 since 2016, when it slowed production, making just six jets a year.
The last passenger-carrying “Queen of the Skies” in the world may end up being the most prestigious of them all: Air Force One, carrying the president of the United States.
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