Boeing to halve 747 jumbo jet production

Aircraft marker Boeing will reduce the production of its iconic 747 jumbo jet by half, the company confirmed on Friday.

In a statement, the world biggest aircraft maker said it will slow the production rate of the model to just six planes a year from twelve with effect from September, as its popularity wanes.

In recent years, Boeing had been pitching the aircraft’s 747-8 model variant as a freighter rather than a passenger aircraft. However, a decline in demand meant production fell to one aircraft per month from 1.3 last year.

Explaining the move, Ray Conner, chief executive of Boeing Commercial Airplanes, said, "The air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 freighter."

Conner added that Boeing will be incurring an after-tax charge of $569m (£396.9m) in its fiscal fourth quarter on account of the move.

However, the Boeing boss added the company would be increasing the production of its 787 Dreamliner, from 10 per month to 14 per month by 2020, to cope with rising demand for smaller, more fuel efficient long haul aircraft.

The 747, which took its first flight on 9 February 1969, will still be used for the US Air Force One presidential fleet that is due to be upgraded. British Airways remains the 747’s largest commercial operator with 53 aircraft still in its fleet, 42 of which are in active service.

Willie Walsh, chief executive officer of IAG, the owner of British Airways, confirmed recently that BA would delay the phasing out of its 747 fleet in wake of lower fuel prices.