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%.
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Sources: cnbc.com, simpleflying.com