Boeing Threatens to Axe Iconic 747 Amid Falling Orders and Price Pressure

Boeing has revealed that it may end production of its iconic 747 aircraft due to falling orders and pricing pressure. In a regulatory filing, the company stated that if it cannot obtain sufficient orders or mitigate production risks, it could record additional losses that may be material.

The 747 program has been facing challenges in the air cargo market, with Boeing reducing its production rate from 1.5 planes per month in June 2015 to one plane per month this year. The company had previously canceled plans to increase production to one plane per month from 2019 and stuck to its plan of halving the production rate in September.

Despite the challenges, Boeing's CEO Dennis Muilenburg stated that the company continues to see the 747 as a unique and significant value creator for customers over the long term. The latest version of the 747 is used by airlines such as Cathay Pacific, Lufthansa, and Air China.

Boeing's announcement comes as Airbus also faces problems with sales of its A380 superjumbo. Airbus plans to roughly halve production of the A380, cutting the delivery target from 27 in 2015 to 12 a year from 2018.