Goldman Sachs thinks Boeing will have to further cut 777 production

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The Boeing Co. recently announced plans to slow production of its wide-body 777 aircraft, but investment firm Goldman Sachs believes the cuts will keep on coming as Boeing bridges the gap between its current model and the coming 777X.




According to a Goldman research note published by Barron’s, analyst Noah Poponak suspects Boeing will have to build five planes a month in 2018 and four in 2019.

The company has already announced plans to slow the 777 from its current rate of 8.3 planes per month to seven per month next year.

The 777X is officially scheduled to enter service in 2020.

A further cut to production as Boeing waits for the 777X to arrive would have an impact in Wichita, where Spirit AeroSystems Inc. (NYSE: SPR) builds the forward fuselage and other components on the 777.