Even during the pandemic, Boeing remains optimistic. The company expects the demand from the airline industry to grow bigger in the next 20 years. According to Boeing’s annual market outlook, the global fleet of commercial airplanes will climb from 25,900 in 2019 to 49,405 in 2040. Boeing also expects that 90% of those planes are going to be new models.
As for the global aerospace industry including defense and services, the company made a bold prediction that it could reach $9 trillion in the next decade. This will represent a $500 billion jump from their forecast last year. What makes this forecast interesting is the fact that it is the largest prediction the company made for the industry in the last 10 years.
Chief strategy officer for Boeing, Mark Allen said that “It is a pretty promising view and it tells us it’s time to start preparing for growth”.
International Travel Remains Low For Now
International travel remains low for now. With government restrictions, international travel is down 74% compared to its 2019 numbers. Domestic travel, on the other hand, is down by 16%. By late 2023 to early 2024, Boeing predicts that global travel will return to its 2019 levels.
Darren Hulst who works as the company’s vice president of commercial marketing, “The industry essentially had two years of growth wiped out by the pandemic”.
The company noticed the demand for 723 airplanes gaining momentum last year. The airlines are expecting the delivery of almost 900 Boeing and Airbus airplanes within the year. And by the end of the decade, the airline industry will need more than 19,000 new airplanes. The majority of those orders are single-aisle planes similar to the Airbus A320 and the Boeing 737 Max.
Aside from commercial planes, the company also expects more cargo planes in the next 20 years. The growth is driven by the demand for products to reach different parts of the world. In 2019, there were over 1,000 cargo planes worldwide. By 2040, there is an expected 70% jump. Boeing predicts to see around 7500 cargo planes in 2040.
