Boeing Co., the world’s biggest plane maker, may soon be ending production on its 747 aircraft, one of the most iconic planes in history.
According to a regulatory filing, the plane maker has been facing falling orders and pricing pressure.
“If we are unable to obtain sufficient orders and/or market, production and other risks cannot be mitigated, we could record additional losses that may be material, and it is reasonably possible that we could decide to end production of the 747,” Boeing said on Wednesday.
“On the 747 program, we decided to reduce future production expectations and revenue assumptions to account for current and anticipated weakness in the air cargo market,” Chief Executive Dennis Muilenburg said on a post-earnings call with analysts.
“Despite the ongoing challenges of the air cargo market, we continue to see the 747 as a unique and significant value creator for our customers over the long term,” Muilenburg commented.
The company said it had canceled plans to increase production of the 747 to one plane per month from 2019, and is sticking to its plan of halving the production rate in September.
The production rate of the 747 dropped to one per month in this month. It was 1.5 per month in June 2015.
Boeing shares have fallen about 6 percent since the start of the year.
Disclaimer: We have no position in Boeing Co (NYSE: BA) and have not been compensated for this article.