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.
[image 1]
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.
[Image 2]
New Orders
The positive
outlook bodes well for Boeing's long-range, twin-engine aircraft, such as …
read full article at Seeking Alpha.
