“Affinity Group Solutions” reports that there was a 6 percent drop in Boeing Co shares as it looks to cut production this year.
Boeing is looking to cut back its operation in the production of its widebody planes. By doing this you can expect its share price to be reduced.
“Affinity Group Solutions” thinks that this is the first in a series of expected moves in cut back measures Boeing will be making this year to weather the economic down turn. By cutting back on parts of its operations it will help the company get through this down cycle. The airline industry is well schooled in how to weather bad economic times and Boeing over the years has demonstrated that it can survive the harshest of climates.
Senior analyst from “Affinity Group Solutions” said that they do not expect the airline to increase production until there are stronger signs of the economy recovering. “Once you see a demand in airlines then production will increase.”
The production of the widebody plane will fall from seven planes per month to five planes per month. We also expect the announcement of it to delay some new models that where expected.
Boeing mentioned that times were “extremely difficult”, “Affinity Group Solutions” senior analyst says that although its difficult times they are right to be cautious on its production output. We don’t expect the airline industry to pick up again until 2010, however Boeing share price now will offer good returns in the future.
