Summary: Boeing sees continued growth in the industry over the next two decades.The single-aisle market and strong demand from the Asia Pacific region are the two main factors fueling this growth. Yesterday, Boeing announced a massive new order from Emirates Airline. How does it stand against its biggest competitor, Airbus?
Boeing (NYSE:BA) is firing on all cylinders as it gears up for the Farnborough International Airshow. Yesterday, the company said that it has won a massive order from Emirates for 150 aircraft. Today, it came forward with a rosy outlook that could continue to fuel its growth over the next twenty years.
Long Term Outlook
Earlier today, Boeing said that it sees the demand of more than 36,000 new airplanes over the next two decades, that's 4.2% higher than its previous estimate. The company has valued these panes at $5.2 trillion.
This growth will be driven by the strong demand from the single-aisle market, thanks to the rise of the low-cost carriers. The company projects that more than 25,000 new airplanes will be needed in the single-aisle and 8,600 in the twin-aisle market.
Boeing said that a significant portion of this growth, more than 36%, will be driven by customers from Asia-Pacific, including China. The country, which will be responsible of 40% of the orders from Asia pacific, is on track to become the largest aviation market, surpassing the U.S.