Boeing cuts 747 output as air freight slows

(MENAFN- AFP) Boeing said Thursday it would cut back production of its freight workhorse 747-8 aircraft by half as the air cargo industry slows.

Boeing said it could move from completing one 747-8 per month to one every two months from September.

The company said data in November showed air freight had contracted by 1.2 percent over a year, even as air passenger volumes grew 5.9 percent.

"We are closely monitoring the air cargo market as we work to win additional orders to support ongoing future production," said Boeing chief financial officer Greg Smith.

Boeing will take a $569 million charge against after-tax earnings for the fourth quarter of 2015 for the production cut.

Earnings will be reported on January 27.