Are the days of Boeing ruling the skies a thing of the past?

Earnings will also be dented by Boeing's decision to halt production of the 717 jetliner, its smallest.

It will take a hit of $615m (�329m) for the three months through December.

That will erase 48 cents per share of profit. Analysts had estimated the firm would have earnings per share of 50 cents during the fourth quarter.

Boeing is to end production of the 717 in 2006 to instead renew its focus on medium to large-sized aircraft, most specifically its forthcoming medium-sized 7E7 Dreamliner, which will fly into business in 2008.

It also is having to fight harder for defence contracts, battling European companies such as EADS, which owns Airbus, analysts said.

Meanwhile, Airbus, which overtook Boeing as the world's number one civilian aircraft maker, will launch its giant double-decker A380 plane on Tuesday.

Boeing will release its October to December fourth quarter results on 2 February.