Boeing is to lower the production rate of the 747-8 to 0.5 per month in September 2016 because of slowing demand in the cargo market.

“Global air passenger traffic growth and airplane demand remain strong, but 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, president and CEO of Boeing Commercial Airplanes and vice chairman of Boeing. “While we remain confident in the 747-8’s unique value proposition and an upcoming replacement cycle for late-model 747-400 Freighters, we’re taking the prudent step to further align production with current market requirements.”

The freighter variant of the 747-8 programme has had more success than the passenger version, with orders from seven airlines for the 747-8F compared to just three for the 747-8 Intercontinental.

According to data released by the International Air Transport Association, global air cargo volumes for November 2015 fell 1.3% year-on-year. But the association also noted that the declines could be showing signs of improvement as a result of more stable trade volumes.

“We are closely monitoring the air cargo market as we work to win additional orders to support ongoing future production,” said Greg Smith, chief financial officer and executive vice president of business development and strategy at Boeing. “At the same time, we continue to aggressively drive productivity to lower costs across our production system to offset the current market challenges.”

Boeing will report an after-tax charge of US$569 million to account for the change when it announces financial results for the fourth quarter of 2015, according to the company.