Boe­ing cuts 747 out­put as air freight slows

The Pak Banker - - COMPANIES/BOSS -

NEW YORK: Boe­ing said Thurs­day it would cut back pro­duc­tion of its freight work­horse 747-8 air­craft by half as the air cargo in­dus­try slows. Boe­ing said it could move from com­plet­ing one 747-8 per month to one ev­ery two months from Septem­ber. The com­pany said data in Novem­ber showed air freight had con­tracted by 1.2 per­cent over a year, even as air pas­sen­ger vol­umes grew 5.9 per­cent. "We are closely mon­i­tor­ing the air cargo mar­ket as we work to win ad­di­tional or­ders to sup­port on­go­ing fu­ture pro­duc­tion," said Boe­ing chief fi­nan­cial of­fi­cer Greg Smith. Boe­ing will take a $569 mil­lion charge against af­ter-tax earn­ings for the fourth quar­ter of 2015 for the pro­duc­tion cut. Earn­ings will be re­ported on Jan­uary 27.

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