PLANE maker Boeing yesterday upgraded its 20-year demand forecasts, saying airlines will need 35,280 new jets worth $4.8 trillion as the world’s fleet doubles over the next two decades.
The bullish new forecast shows a 3.8 per cent increase from Boeing’s prior rolling 20-year outlook, anticipating a surge in Asia-Pacific travel that will keep production rates at jet factories rising.
The update comes a week after the International Air Transport Association hiked its traffic forecasts for the next year and said the industry will carry more than 3bn passengers this year.
Boeing said passenger and cargo traffic, both indicators of economic activity, are expected to grow five per cent annually.
Airlines will need 24,670 single-aisle jets worth $2.29 trillion at list prices, according to the latest forecast, up from 23,240 forecast last year.
But among larger and smaller planes, the trend is for less or flat demand compared with previous forecasts, Boeing said.
The global fleet of commercial airplanes hit 20,310 last year, its first time above 20,000, and is expected to more than double to 41,000 planes by 2032, Boeing said.
Boeing dismissed concerns that aircraft makers are churning out too many planes, creating a bubble of oversupply.
“Every indicator that we see in the market says that the demand is real and there is a need to increase production,” said Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes.
City A.M. Reporter