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Boeing 787 production rate will continue to fluctuate through 2023

Boeing lost $636 million last year, its first full-year loss since 1997.
Boeing lost $636 million last year, its first full-year loss since 1997.(Source: Boeing, CNN)
Updated: Jan. 29, 2020 at 12:04 PM EST
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CHARLESTON, S.C. (WCSC) - The production rate of the Boeing 787 made at the company’s plant in North Charleston will continue to change through 2023, according to the plane maker’s fourth-quarter earnings report released Wednesday morning.

After announcing in the third quarter that the production rate would dip from 14 to 12 planes per month in late 2020, the company will now further adjust that rate to 10 planes per month in early 2021. In 2023, Boeing will return to making 12 planes per month.

The reduction in 2020 marks a return to the previous production rate after CEO Dennis Muilenburg announced in early 2019 that the 787 production rate would decrease from 14 to 12.

The report also stated Boeing delivered 45 787′s during the fourth quarter while booking orders for 36 more.

Commercial Airplanes delivered 79 airplanes during the quarter, including 45 787's, and captured orders for 30 737 MAX aircraft at the Dubai Air Show and 2 777 freighters for Lufthansa. The 787 program also booked 36 net orders in the quarter.

Boeing stated that its backlog of planes stood at 5,400 with a total value of $377 billion.

The fallout for the company from the 737 MAX crisis has also continued. The company said the cost of compensating airlines because of the plane’s grounding is expected to reach $8.3 billion, according to the New York Times.

“We recognize we have a lot of work to do,” said Boeing President and Chief Executive Officer David Calhoun. “We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public. We are committed to transparency and excellence in everything we do. Safety will underwrite every decision, every action and every step we take as we move forward. Fortunately, the strength of our overall Boeing portfolio of businesses provides the financial liquidity to follow a thorough and disciplined recovery process.”

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