By Kathy Fieweger CHICAGO, May 22 (Reuters) - Boeing Co. (BA) said on Wednesday it will produce eight fewer wide-body jets in 2003 than originally planned, but it still expects to deliver between 275 and 300 airplanes next year on higher demand for single-aisle 737s in the wake of the Sept. 11 attacks. Fewer of the jumbo jets will be delivered as traffic remains weak, particularly on international routes, said Alan Mulally, chief executive of Boeing Commercial Airplanes division. Boeing's projection for 380 deliveries this year remains intact, although the third quarter will be the period of lowest deliveries, he said at an investors conference in St. Louis, home of Boeing's military division. Despite the drop-off in deliveries in through 2003, commercial airplanes will maintain profitability, he said. Pressure on the market for wide-body jets is "a concern to us," Mulally said. Boeing is the world's largest manufacturer of commercial aircraft, and was hit hard after the Sept. 11 attacks slashed demand for air travel. It subsequently announced plans to lay off 30,000 commercial airplane workers to cope with the reduced demand. About 60 percent of revenues for the company come from the sale of commercial planes to airlines around the world. The company is also the No. 2 U.S. defense contractor. Boeing shares were down 1.62 percent in midday New York Stock Exchange trading, down 72 cents to $43.65. Boeing was the worst performing of all stocks in the Dow Jones Industrial average last year, but has rebounded from post Sept. 11 lows on strength in its military businesses. RANGE STILL RIGHT "Everything we know says that the range for 2003 is 275 to 300," Mulally added. "We've taken eight (wide-body) airplanes out of that plan, but we still have some more insight about upward pressure on the (7)37s." Boeing Chief Executive Phil Condit first alluded to the diverging demand picture for narrow and wide-body jets during a first-quarter earnings conference call but gave no specific figures on how it might change production. Wide-body planes have two aisles as opposed to narrow-body aircraft, such as 737s, which have only one aisle. Low-cost carriers in the United States, Canada and Europe -- modeled after Southwest Airlines (LUV) -- continue to provide the highest demand, he said. Dallas-based Southwest flies only the 737 model. Airlines in general since Sept. 11 have cut back fleet plans and shrunk the number of aircraft types they fly to help reduce maintenance, training and other costs. "I don't think Southwest Airlines is a fad," Mulally said. "These are business models that are so robust to this changing world." Boeing is also developing a next-generation plane called the Sonic Cruiser, aimed at the international point-to-point market. But its launch date has been delayed to around 2010 as the airline industry downturn goes on and carriers cut back capital spending. There has been some speculation that Boeing may never get Sonic Cruiser off the ground. The Sonic Cruiser would fly higher than current models at just under the speed of sound with engines behind rear-mounted, double-delta wings. Mulally said the plane's parameters are still under discussion with airlines. "Making a new airplane is obviously a very big decision. On a new airplane, I'm not in a hurry. We've got a great product line, we've got terrific long range airplanes with the 767 and the 777. What I really care about is getting it right." Last week at its annual meeting, AMR Corp.'s (AMR) American Airlines, the world's largest airline, said it was working with Boeing on a "limited basis" on the Sonic Cruiser. AMR Chief Executive Donald Carty kidded that the Sonic Cruiser may not be airborne before he is well into retirement. "I'm not sure that I won't be in your shoes by the time that the Sonic Cruiser hits the ramp," Carty told a retiree in the audience. Mulally conceded that an entirely different aircraft model could result from the Sonic Cruiser technology being studied. "Even though we don't talk about it a lot, we look at different configurations that are alternatives to the Sonic Cruiser," he said. Mulally added the research and development focus within commercial airplanes is to improve the 777 family, finish the 737 family and develop a 747 with more range and less noise. ©2002 Reuters Limited.