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A Retrospective: The Market Forces That Led Boeing to End 757 Production

The Boeing 757, a versatile and popular narrowbody aircraft, ceased production in 2004 due to a confluence of factors. A primary cause was the severe aviation industry downturn following the 9/11 attacks, which drastically reduced aircraft orders. Internally, the development of more efficient Boeing 737 Next Generation variants, particularly the 737-900ER, began to overlap with the 757's capabilities but offered better economics. Additionally, fierce competition from the Airbus A321 provided airlines a more modern and cost-effective alternative. This combination of a weakened market and superior competing aircraft made the 757 production line unsustainable.

Official Source: https://simpleflying.com/why-boeing-stopped-producing-757/