Dow Jones aerospace giant Boeing lifted its forecast for China over the next 20 years as part of its long-term commercial market outlook released Wednesday. Boeing stock, in the midst of a six-week decline, reversed lower after rising slightly in early trade.
Boeing estimates China will need 8,560 new commercial airplanes through 2042. That's up from Boeing's forecast of 8,485 aircraft last year. The company cited strong traffic growth in Asia markets and growing domestic air-travel demand in China. Boeing predicts China will account for one-fifth of the world's airplane deliveries in the next two decades. And China's domestic aviation market, Boeing says, will be the largest globally by the end of the forecast period. Boeing's projections say China's commercial air fleet will more than double, to nearly 9,600 jets.
"Domestic air traffic in China has already surpassed pre-pandemic levels and international traffic is recovering steadily," said Darren Hulst, Boeing vice president, Commercial Marketing. "As China's economy and traffic continue to grow, Boeing's complete lineup of commercial jets will play a key role in helping meet that growth sustainably and economically."
The forecast calls for China's commercial services market to grow at a 5.2% clip over the next 20 years, requiring $675 billion in repair, maintenance, training and parts services during that time.
The Dow Jones jet maker said the global aviation industry is on track to return to pre-pandemic traffic levels in 2023. Overall, the commercial market outlook forecasts demand for more than 42,000 planes over the next 20 years.
Boeing Stock
Boeing stock eased 1% Wednesday after rising 0.3% in the morning. Shares declined in 12 of the last 13 trading days as BA stock tumbled from its 2023 peak of 243.10 on Aug. 1.
Boeing stock has been a Dow Jones Industrial Average laggard over the past 30 trading sessions. It is trading at its lowest level since late June. The stock climbed 6.3% year-to-date.
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