By RTT News,
July 10, 2014, 06:22:00 AM EDT
(RTTNews.com) - Aerospace and defense giant Boeing Co. ( BA ) Thursday announced that it projects a demand for 36,770 new airplanes over the next 20 years, an increase of 4.2 percent from last year's forecast. The total value of those new airplanes are estimated at $5.2 trillion.
Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes, said, "This market is strong and resilient. With new and more efficient airplanes entering service, the growth in air travel is being driven by customers who want to fly where they want, when they want."
The Asia-Pacific market, including China, will continue to top the list for airplane deliveries, with the projected demand for 13,460 deliveries. North America follows with demand for 7,550 units, and then Europe with 7,450 units.
In its annual Current Market Outlook or CMO presented today in London, the company noted that single-aisle airplane segment is fastest growing, and most dynamic due to the continued emergence of low-cost carriers. The single-aisle market will need 25,680 new airplanes, with 90 to 230 seats, representing 70 percent of the total units in the forecast. The deliveries are valued at $2.56 trillion.
Tinseth said, "Based on the overwhelming amount of orders and deliveries, we see the heart of the single-aisle market in the 160-seat range. There's no question the market is converging to this size, where network flexibility and cost efficiency meet. The Next-Generation 737-800 and new 737 MAX 8 offer our customers the most revenue potential in this mid-sized space."
In the twin-aisle segment, Boeing forecasts that 8,600 new airplanes will be needed, led by small wide-body airplanes in the 200 to 300 seat range such as the 787-8 and 787-9 Dreamliner. The latest projection reflects a continued shift in demand from very large airplanes to efficient new twin-engine products such as the 787-10 and new 777X.
In addition, the company projects that deliveries of regional jets with 90 and below seats would be 2,490 units worth $100 billion. In small wide-body segment, 4,520 deliveries are expected worth $1.14 trillion, and 3,460 medium wide-body planes are expected to deliver worth $1.16 trillion. Boeing also projects delivery of 620 large wide-body planes worth $240 billion.
Boeing noted that its Current Market Outlook is the longest running jet forecast and regarded as the most comprehensive analysis of the aviation industry.
Boeing stock closed Wednesday's regular trading at $126.79. In the after hours trading, stock gained 0.29 percent, and traded at $127.16.
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