■ Boeing shares dip as aircraft builder says demand hasn’t returned to pre-pandemic levels and may yet struggle to do so.
Boeing Co. shares were active Tuesday after the world’s biggest plane maker published its annual industry forecast that indicates global demand for commercial aircraft hasn’t yet returned to pre-pandemic levels.
The 2021 Boeing Market Outlook, its annual analysis of long-term market dynamics, sees overall demand for around 43,610 over the next two decades, a figure that represents around $7.2 trillion (U.S.) in value but is down from its 2019 forecast of 44,040.
Boeing’s ten year forecast sees global demand for 19,000 commercial airplanes valued at around $3.2 trillion, the company said, as cargo fleets expand to meet expanding e-commerce sales in major economies around the world.
However, in absolute terms, Boeing sees a total addressable market of $9 trillion in 2040, but from its prior forecast of $8.5 trillion last year and $8.7 trillion in 2019.
“The aerospace industry has made important progress in the recovery, and Boeing ’s 2021 forecast reflects our confidence in the resilience of the market,” said Boeing’s CEO of commercial airplanes Stan Deal. “While we remain realistic about ongoing challenges, the past year has shown that passenger traffic rebounds swiftly when the flying public and governments have confidence in health and safety during air travel.”
Boeing posted its first quarterly profit in more than two years in July, thanks in part to the post-pandemic rebound in commercial aviation and an accelerating vaccine rate. Boeing also noted its current order backlog edged lower on the quarter, to $363 billion, adding that the commercial airlines portion of the tally rose to $285 billion thanks to 180 net new orders.