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
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
×