Boeing believes the future is bright for aviation
Despite remarkable underperformance in the air cargo industry in 2012, Boeing is predicting a solid growth in the future demand for airplanes, particularly in Asia Pacific.
In its annual forecasting report Current Market Outlook, Boeing comments on the ‘remarkable resilience of air travel’ which it has recorded over the last 50 years of the report. Despite a contraction in air cargo traffic in 2011, Boeing believes the expansion of emerging-market economies will ‘foster a growing need for fast, efficient transport of goods’.
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The aircraft manufacturer estimates that air cargo rates will grow 5.2 percent annually through to 2031, creating a demand for 34,000 new aircraft from 2012 to 2031.
‘These new airplanes will replace older, less efficient airplanes, benefiting airlines and passengers and stimulating growth in emerging markets and innovation in airline business models,’ noted the forecast.
This demand for new airplanes will bring in $4.5 trillion of revenue for Boeing, a large percent of which will come from the Asia Pacific Region. According to the report, 12,030 of the new planes which are required will be delivered to emerging markets such as China, with 75 percent of the demand down to growth rather than replacement.
About the Current Market Outlook
The Current Market Outlook is Boeing’s long-term forecast of air traffic volumes and airplane demand. The forecast has several important practical applications, shaping Boeing’s product strategy and providing guidance for the manufacturer’s long-term business planning. Boeing have shared the forecast with the public since 1964 to help airlines, suppliers, and the financial community make informed decisions.