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Boeing expects COVID-19 to hurt aircraft sales for the next decade

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Miguel A. Rodriguez
Miguel A. Rodriguez
07 October 2020
An increase in demand could start in 2040

Companies from the aviation industry are trying to overcome the pandemic’s effects any way they can. Last week, we talked about how American Airlines and United Airlines will furlough 32,000 people if they don’t receive a $25 billion stimulus package from the government. 

Now, one of the world’s largest air carriers and manufacturers, Boeing cut its expectations for brand new commercial aircraft demand not for a quarter or two, but a decade. According to Boeing, in the next ten years, at a global level, airlines will need 18,350 planes said to be worth $2.9 trillion. Compared to last year’s forecast, the #pandemic caused an 11% drop in demand. 

While Boeing made its forecast, the International Air Transport Association said that maybe starting from 2024, the global travel demand will start recovering to the pre-pandemic levels.

Boeing was one of the companies that have been affected by the pandemic. In the first half of the year, its sales figures came in at $28.7 billion – a 26% drop compared to the same time last year. Almost 44% of the revenue came from the defense and space unit sectors. For the previous two, Boeing is expecting a $2.6 trillion market over the next #decade. 

The company’s forecast didn’t stop in the next decade but continued until 2040. Boeing believes that until then, the global fleet will increase to 48,400 aircraft from the current 25,900. The most significant increase is coming from Asia, which will account for 40% of the world’s fleet. 

Following the report, the Boeing stock price fell more than 3%. 

Read here about American Airlines and United Airlines!

Sources: cnbc.com, simpleflying.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.