Boeing to report $569m cost as 747 Jumbo output cut

Boeing plans to report a $569m after-tax accounting loss as it cuts production of the iconic 747 jumbo jet in half amid waning demand for four-engine aircraft and a slumping cargo market. The planemaker will reduce output of the humpbacked 747, Boeing’s largest jetliner, to six aircraft a year starting in September. The company previously said it would slow annual production to 12 beginning in March, the latest in a series of reductions made as the order backlog for the jets has shrunk. “The air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 Freighter,” said Ray Conner, CEO of Boeing’s commercial airplane unit. Nicknamed the “Queen of the Skies” for its graceful lines, the jumbo made long-range travel affordable for a mass consumer market when it was introduced in 1970. Sales have sputtered over the past decade, as more-efficient twin-engine aircraft such as Boeing’s 777 gained popularity. Boeing had just 20 unfilled orders for the 747-8, the latest jumbo model, as of December.<br/>