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.
CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).
This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.