More of us are taking to the skies

PEOPLE’S desire to see the world is giving Boeing a lift, and executives at the aircraft maker say travel is a long-term growth industry.

After all, they reason, only about one in five people has flown, so there is plenty of upside to keep building planes.

Airline profits remain healthy, and through February passenger traffic was up almost 6 per cent on a year ago, Boeing executives said yesterday as they announced firstquarter earnings and revenue above expectations.

The Chicago company also raised its profit forecast for the full year. Boeing shares were up 12 per cent since the start of this year and 79 per cent in the past 12 months They climbed another $US5.12 ($A6.76), or 1.6 per cent, to $US334.18.

Boeing has a backlog of 5835 airliners valued at $US415 billion — although airlines usually receive discounts.

This month it had a twin boost when American Airlines ordered 47 more of its 787 Dreamliner jets and Hawaiian Airlines signed its intent to buy 10 of the twin-aisle planes for international routes.

Boeing said first-quarter profit rose 57 per cent to $US2.48 billion. The company said core earnings were $US3.64 a share, easily up on analysts’ prediction of $US2.59 per share, according to Zacks Investment Research.

Revenue grew 6 per cent to $US23.38 billion on delivery of 184 commercial planes.

Talk of a trade war rattled investors, with Boeing an easy target for Chinese retaliation.

Jim Corridore, a CFRA Research analyst, said tariffs were unlikely to hurt Boeing because “China has a huge need for aircraft which cannot be filled by other manufacturers”.