15 Sept 2021
Boeing Shares Slip; Report Shows Pandemic Hit to $9 Trillion Aircraft Market
The Index Today
Boeing, the world’s biggest aerospace company published its annual forecast report which reflected how demand for commercial aircraft hasn’t improved since the pandemic.
The report for 2021 shows the overall demand for 43,610 in the upcoming two decades which accounts for $7.2 trillion in value. This value has decreased from the 2019 forecast for 44,040.
The company has forecasted global demand for 19,000 commercial planes valued at $3.2 trillion due to growing e-commerce sales around the world. A possible market growth of $9 trillion is expected in 2040 in the long run.
Boeing CEO, Stan Deal, stated, “The aerospace industry has made important progress in the recovery, and Boeing’s 2021 forecast reflects our confidence in the resilience of the market. While we remain realistic about ongoing challenges, the past year has shown that passenger traffic rebounds swiftly when the flying public and governments have confidence in health and safety during air travel. Our industry continues to serve an essential role of bringing people together and transporting critical supplies.”
During early trading on Tuesday, the company’s shares dropped 0.45% lower at $213.55. After the pandemic, Boeing has reportedly made its first quarterly profit due to growing commercial aviation and higher vaccine rate.