Boeing: Single-Aisle Aircraft Will Be Most in Demand

Although Boeing's (NYSE: BA  ) widebody 787 Dreamliner has commanded much media attention lately, it's going to be single-aisle aircraft like the 737 and the company's future 737 MAX that will comprise the bulk of demand for airplanes over the next 20 years.

Unveiling its Current Market Outlook in Paris today, Boeing said it estimates there will be a global need for 35,280 new airplanes during the next two decades as both passenger traffic and cargo traffic grow 5% annually. The company values those planes at $4.8 trillion and forecasts the world fleet to double over the next two decades.

Boeing VP of Marketing for Commercial Aircraft Randy Tinseth was quoted as saying: "This forecast gives us confidence as we increase our production rates and invest in new products like the 777X and 787-10X. Airlines are demanding more efficiency and that is exactly what we'll be giving them."

Boeing anticipates 70% of the demand will fall into the single-aisle market while widebodies like the 747-8, 777, and even its 787 Dreamliner will comprise 24% of the need. Regional jets will make up the balance. The growth of low-cost carriers and airlines from emerging markets will push this movement.

Most of the demand will come from the Asia-Pacific region, Boeing predicts, with China being among the biggest customers, or 36%, for the planes. Another 21% will come from Europe and North America will account for 20.5% of the total.

Boeing projects that 14,350 of these new airplanes needed over the next two decades (nearly 41% of the total new deliveries) will replace older, less-efficient airplanes, while the remainder will be for fleet growth.

Click here to watch a video of Fool analyst Blake Bos talking about the investing takeaway from Beoing's latest global forecast.

link


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 11, 2013, at 5:04 PM, SammyBernstein wrote:

    OH GREAT - another small cramped aircraft with little overhead space and fat people bumping me with their fat booties as they board.

Add your comment.

DocumentId: 2483570, ~/Articles/ArticleHandler.aspx, 7/31/2014 12:20:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement