By Justin Dove
Boeing , usually conservative in future estimates, released a bullish forecast Thursday. The report estimates that jet sales will reach $4 trillion over the next 20 years. That equates to 33,500 jet sales between now and 2030. It’s also 2,600 more than they estimated last year for a period ending 2029.
Growing demand in Asia and increasing demand for more fuel efficient aircrafts, especially single-aisle aircrafts, were the two biggest factors for the uptick.
Boeing reports that air travel increased by 8 percent in 2010, after falling by 2 percent in 2009. They don’t seem to be worried about any turmoil around them as seen in this excerpt from the CMO:
“Although volatile fuel costs, political upheaval in the Middle East and North Africa, and unresolved government debt in many industrialized economies create risk of a renewed downturn, commercial aviation has weathered such shocks to the system in the past. Recovery has followed each event as the industry reliably returned to its long-term growth rate of approximately 5 percent per year.”
It’s important to note that the forecast is not just for Boeing, but the airline industry as a whole. Boeing stock is already seeing gains as a result of the news and it’s likely that other manufacturers and carriers may benefit as well.