Aerospace and defence company Boeing has revealed plans to stop production of 747 aircraft as it continues to adjust operations due to Covid-19.

The announcement came as Boeing aims to strengthen its near-term liquidity after revealing $2.4bn loss due to the pandemic.

The firm suspended dividends, terminated its share repurchasing programme, and reduced discretionary spending and overhead costs.

It will further reduce 787 production to six a month next year and have a slower ramp-up in 737 production than previously planned, with a gradual increase to 31 a month by the beginning of 2022.

Furthermore, Boeing reportedly warned of further job cuts than previously announced.

The firm said the slowdown can lead to deeper job cuts, in addition to roughly 16,000 layoffs or around 10% of its workforce it has already planned.

Boeing president and CEO Dave Calhoun in its letter to employees said: “The reality is the pandemic’s impact on the aviation sector continues to be severe. Though some fliers are returning slowly to the air, their numbers remain far lower than 2019, with airline revenues likewise reduced.

“This pressure on our commercial customers means they are delaying jet purchases, slowing deliveries, deferring elective maintenance, retiring older aircraft and reducing spend all of which affects our business and, ultimately, our bottom line. While there have been some encouraging signs, we estimate it will take around three years to return to 2019 passenger levels.”

Earlier this month, British Airways (BA) reportedly planned to retire its entire Boeing 747 fleet as the pandemic reduces travel demand.

Recently, Boeing reportedly planned to defer the production of new 777X aircraft by several months or even up to a year due to the pandemic.