Boeing Raises Forecast for Jetliner Market (BA)

PUBLISHED: Jul 03 2012 @ 16:30 | Comments (0) | More info about Ed Liston

Boeing Company (NYSE:BA) has raised its outlook for the jetliner market. BA now forecasts a $4.5 trillion jetliner market over the next 20 years for 34,000 new commercial jets. This is nearly half a trillion dollars more than the company’s previous year’s estimate.

Randy Tinseth, Vice President of Marketing, Boeing Commercial Airplanes, said during a presentation in London that the world’s aviation market is broader, deeper and more diverse than we have ever seen it. However, Tinseth warned that the world’s airlines could face trouble ahead due to the problems in Europe and slowdown in global air cargo.

Boeing expects the global economy to grow 2.5% this year. Over the next 20 years, though, the company expects the global economy to grow 3.2% annually.

An annual growth rate of 3.2% will drive a 4% increase in the number of people flying each year and a 5% improvement in airline traffic each year. This, according to Boeing, would result in doubling of air travel over the next 20 years.

The company expects 41% of the new deliveries to go toward replacing older jets, which are less fuel-efficient.

Boeing stock finished 1.49% higher in trading today.

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