The Boeing Company
The global commercial fleet is expected to grow at an annual rate of 3.2%, slower than air traffic growth, as airlines enhance productivity by raising load factors and utilizing airplanes for more hours each day.
Boeing expects that emerging markets and global single-aisle market demand will be the main growth drivers for the industry.
By geographies, Boeing projects South Asia's passenger traffic to grow by 7.4%, followed by Southeast Asia at 7.2% and Africa at 6.4%. Also, Eurasia will lead airplane deliveries with 22%, while North America and China will each account for 20%.
By 2043, single-aisle airplanes will comprise 71% of the fleet with 33,380 new deliveries, mainly for short- to medium-haul routes.
The 2024 Commercial Market Outlook (CMO) forecasts that passenger air traffic will increase by an average of 4.7% annually over the next two decades compared to 2023.
Dan Abraham, senior vice president of Boeing Global Services Commercial Sales and Marketing, commented, "As airlines respond to robust passenger demand, the services market continues to expand, not only as a result of fleet growth, but also with an increased focus on reducing operating costs and deploying efficient and sustainable solutions."
Boeing forecasts a $4.4 trillion demand for commercial services, fueled by maintenance, modifications, and digital solutions that enhance efficiency.
Today, Woodward, Inc.
Last week, Boeing faced yet another challenge as Washington state factory workers voted overwhelmingly in favor of a strike mandate, amid the workers' demand for a 40% raise during their first full negotiation with Boeing in 16 years.
Boeing stock has lost more than 16% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF
Price Action: BA shares are up 0.46% at $180.50 premarket at the last check Monday.
