Boeing (NYSE: BA ) has been flying high this year; its stock price is up more than 80% over the past 12 months. Part of that increase is due to predictions that the world's demand for commercial aircraft will strengthen significantly over the next two decades.
For instance, Boeing forecasts that airlines in just the Middle East will require 2,610 new airplanes over the next two decades, it highlighted today. That's worth an estimated $550 billion, according to Boeing, no small chunk of change. Boeing also estimates that 66% of that demand will be driven by expansion of fleets in the region (with the rest of the new jets replacing existing ones), emphasizing that growth will continue to strengthen in emerging markets. Click here to see Boeing's long-term market forecast for the Middle East, 2013-2032.
"Boeing is well-positioned to address demand in the Middle East," said Randy Tinseth, vice president of marketing, Boeing Commercial Airplanes, in a press release. "Boeing airplanes provide airlines in the region with the capability to serve their expanding networks, the comfort and flexibility for a premium brand experience and the superior operating economics to create advantages not only for the airlines, but the flying public as well."
Tinseth said that over the last decade, the region has seen a rise in low-cost carriers that have "benefitted from a large youthful population, large migrant workforce and trends toward market liberalization."
This is a trend Boeing forecasts happening across the globe as long-term demand for 35,280 new aircraft is expected over the next two decades. That's valued at roughly $4.8 trillion, a mind boggling amount of revenue up for grabs between a handful of competitors.