Boeing Upbeat About Demand

Boeing has an upbeat outlook for the future these days, raising its 20-year forecast, according to a report in Reuters.

Two days into England’s Farnborough Airshow, the deals were rolling in and raising prospects for the planemaker.

In 2017, Boeing predicted 41,030 deliveries over the next 20 years. That forecast has risen 3 percent to 42,700 at a value of $6.3 trillion.

The single-aisle aircraft was dominating sales for both Boeing and rival Airbus, and a rise in popularity of low-cost carriers may be partially responsible for the boom as airlines boost their fleets with these smaller planes.

Boeing has increased its forecast for these types of aircraft, which include the popular 737, by 5 percent.

The company also recently made the strategic move to enter into a development agreement with Brazilian planemaker Embraer. The two companies signed a memorandum of understanding to work together on 100- to 150-seat aircraft.

However, Boeing did lower its forecast for its wide-body aircraft by 140 but still has faith in the aircraft. The company noted that higher deliveries over the last year as well as an increase in the popularity of single-aisle long-haul planes.

Both Boeing and Airbus were in deal-making mode but many negotiations were just firming up previously reported agreements.

Rising fuel costs and impending trade wars were still a concern for both platemakers as both sectors are heavily reliant on emerging markets, including China.

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