Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Boeing issues surprisingly upbeat outlook for Chinese aircraft demand

Boeing issues surprisingly upbeat outlook for Chinese aircraft demand

Global demand for new aircraft is likely to be hurt for decades because of the Covid-19 pandemic. Yet Boeing just increased its industrywide Chinese sales forecast for the next 20 years -- above where that estimate stood in pre-pandemic times.
Boeing now expects overall aircraft sales to China be 8,600 new airplanes, valued at $1.4 trillion, over the next 20 years. That estimate is 7% higher than its forecast a year ago.

It's just one example of China's economic recovery outpacing the rest of the world. It's also in stark contrast to the falling global demand Boeing forecast just a month ago: On a worldwide scale, Boeing slashed its 10-year outlook for industrywide aircraft sales to 18,530, 11% lower than its 2019 estimate, and cut its 20-year outlook to 43,000 aircraft, down 2% from a year ago.

Boeing regularly issues forecasts for industrywide aircraft demand in different regions of the world.

The company's bullish view of the Chinese market is driven by its expectation that passenger traffic will rise much faster there than the rest of the world. Boeing expects 5.5% annual passenger traffic growth in China during the next 20 years, compared to only 4% annual global growth in passenger traffic worldwide.

"While Covid-19 has severely impacted every passenger market worldwide, China's fundamental growth drivers remain resilient and robust," said Richard Wynne, Boeing's managing director of China marketing.

Wynne cited China's recovery from Covid-19 outpacing the rest of the world, along with continued government investment in transportation infrastructure, a large population to boost air traffic figures and "a flourishing domestic market," all of which "mean this region of the world will thrive."

According to Johns Hopkins University's tracking of global Covid-19 cases, China has had only 922 infections in the last month and three deaths. That compares to 1,893 US Covid deaths on Wednesday alone.

China, which is the world's second largest economy, was the only major world power to avoid a recession this year. The country mounted its relatively quick recovery through several measures, including stringent lockdown and population tracking policies and government funds to boost consumer and infrastructure spending. China's GDP is expected to grow 1.6% this year, while the global economy as a whole will contract 5.2%, according to World Bank projections.

The downturn in global air travel is expected to last until at least 2024, according to the Interntional Air Transport Association -- even if there is a much quicker end to the pandemic, since recessions traditionally cause a long-term drag on air travel. And that has caused a long-term hit to Boeing's prospects.

The company, which has a backlog of orders for nearly 4,300 planes, has nonetheless cut its production targets and is in the process of eliminating nearly 15% of its jobs. Boeing has faced headwinds selling to China in recent years given trade tensions between the United States and China under the Trump administration.

It has booked only one new order since late 2017, two freighters ordered by China Cargo in May, although it's likely that some of its other sales to leasing companies are destined for Chinese customers.

Boeing and rival Airbus (EADSF) have a virtual stranglehold on the market for large commercial jets, although upstart Commercial Aircraft Corporation of China, or Comac, is trying to enter the market.

But Boeing CEO Dave Calhoun told investors last month that he believes Boeing is well positioned to compete for Chinese sales when they bounce back.

"We've had great relationships. We continue to have them," he said. "And the airlines need this kind of lift, and we happen to be one of two people in the world that can deliver it. And that will be that way for quite a while."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×