Boeing, the aircraft manufacturer, was forced to reduce its revenue estimates for this year by $500 million (£251 million) yesterday after a series of delays to its 787 programme.

The Chicago-based company now says the figure will be between $67 billion and $68 billion and also gave warning that it would deliver fewer aircraft than planned.

The 787, the fastest-selling commercial jet so far, has been hit by production delays and its first flight will be nearly a year later than expected.

Boeing had hoped to begin deliveries this year, starting with All Nippon Airways in May. The carbon-fibre aircraft will now have its inaugural flight in the summer and first delivery will be in about a year, assuming no further delays. Boeing has forecast that it will deliver between 475 and 480 aircraft this year, down from earlier estimates of 480 to 490, as a result of the 787 delays.

Concern about the impact of the delays, including the cost of compensation payments to airlines affected, has dragged Boeing's share price down about 25 per cent since its peak last year.

However, the company was able to report that revenue in the fourth quarter of 2007 was slightly ahead of expectations at $17.5 billion. Revenue in the full year was $66.4 billion and profits were $4.1 billion, up from $2.2 billion in 2006.

Boeing has benefited from the strong aerospace sector and now has an order book worth $255 billion for commercial aircraft. Jim McNerney, chief executive, said: “Despite some development programme challenges, we are a strong company growing stronger and we expect continued improvement in our financial results in 2008 and beyond.”

While Boeing's commercial aircraft division enjoyed a record 2007, its military division reported a decline in revenue and profits. Revenue slipped 1percent to $32 billion after the transfer of the Delta IV rocket programme to the United Launch Alliance, a joint space venture with Lockheed Martin.

Boeing said that it would update investors at the end of the first quarter on the progress of the 787 and then outline a new delivery schedule for airline customers in April. The company is still hoping to deliver 109 aircraft by the end of next year but if this slips there could be further earnings revisions to reflect compensation payments.

Robert Stallard, an analyst with Bank of America, said: “The 787 is likely to continue to drive the stock, for better or for worse. Investors will have to judge the merits of the revised delivery schedule in April before the stock is likely to have a chance of meaningful appreciation.”

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