Boeing has announced that it will cease production of its 767 freighter in 2027, and the next-generation 777-8 freighter is not expected to be ready for commercial use until 2028, at least a year later than originally planned.

This decision is part of the company's efforts to mitigate financial losses during a month-long machinists' strike.

"We plan to build and deliver the remaining 767 Freighters ordered by our customers and then conclude production of the commercial program in 2027," Kelly Ortberg, who took over as Boeing's president and CEO two months ago, said in a message to employees related to Boeing's positioning for the future.

Boeing made the disclosure as it also revealed preliminary third-quarter financial results, saying it lost more than US$6 billion in the period.

The reduction in freighter production schedules could pose a problem for the air cargo industry amid an increasing shortage of international widebody freighter capacity as many aircraft are reaching retirement age while shipping demand is expected to grow at a rate of about 4% annually.

Boeing's Commercial Airplanes division plans to stop producing the 767-300 freighter and will incur a US$400 million charge due to the work stoppage. However, it will still complete the delivery of the 29 remaining 767 cargo aircraft — 12 ordered by FedEx and 17 by UPS — before shutting down the production line.

From 2027 onward, Boeing will only continue producing the KC-46A tanker for the US military as the sole version of the 767.

Ortberg mentioned that Boeing is now planning to deliver its first 777-9 in 2026, as opposed to the previous plan of 2025.

"On the 777X program, the challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage, will delay our program timeline. We have notified customers that we now expect the first delivery in 2026," he added.

The program, which has already faced significant delays, encountered more issues this year when Boeing had to stop flight testing due to the discovery of a failed engine structural component.

Boeing also now expects to deliver the first 777-8 Freighter in 2028, also one year later than most recently expected.

American cargo operator FedEx Express operates the largest fleet of Boeing 767s in the world, with approximately 137 of these aircraft. UPS also utilizes 89 767s for its global cargo operations.

The American plane maker also announced that it will be laying off 10% of its workforce in the next few months and reducing its commercial jet production on the back of a month-long strike that has caused the company to lose cash due to its idle factories.

"Our business is in a difficult position, and it is hard to overstate the challenges we face together,"  Ortberg said in his October 11 letter to employees. 

"Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term."

"Along with the above actions, we must also reset our workforce levels to align with our financial reality and to a more focused set of priorities. Over the coming months, we are planning to reduce the size of our total workforce by roughly 10 percent. These reductions will include executives, managers and employees," the Boeing chief further said, noting that "the state of our business and our future recovery require tough actions."

After experiencing reduced production for a year due to a panel blowout in January, Boeing faced financial challenges when over 33,000 machinists went on strike on September 13.

The strike has now lasted for five weeks, with both parties accusing each other of not negotiating in good faith as they remain deeply divided on the terms of a new contract, particularly regarding wage increases and retirement benefits.

"While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view of the work we must do to restore our company," Ortberg said in a separate statement.