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Boeing lifts industry demand forecast as air show deals roll on

  • Published at 09:50 pm July 17th, 2018
  • Last updated at 09:52 pm July 17th, 2018
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A Boeing 787 for Biman puts on a display at the Farnborough Airshow, in Britain on Monday Reuters

Airbus bagged a provisional deal with an unidentified customer for 100 single-aisle A320 family jets, worth about $11.5 billion at list prices

Boeing raised its rolling 20-year industry forecast for passenger and cargo aircraft on Tuesday, as a steady flow of deals on day two of the Farnborough Airshow underscored the industry's resilience to rising global trade tensions.

The world's biggest planemaker predicted 42,700 industry deliveries over the next two decades, up 3% from its estimate of 41,030 a year ago. That would be worth $6.3 trillion   at list prices versus last year's $6.1 trillion forecast.

The US group and European rival Airbus continued to rack up deals at the air show in southern England after a brisk opening day on Monday.

Russian airline Volga Dnepr committed to buying Boeing freighters worth $11.8 billion at list prices, while US leasing company Air Lease Corp committed to buying as many as 78 Boeing aircraft worth $9.6 billion.

In the meantime, Airbus bagged a provisional deal with an unidentified customer for 100 single-aisle A320 family jets, worth about $11.5 billion at list prices.

But analysts cautioned many deals firmed up provisional ones, disclosed previously unidentified buyers, or changed existing orders, making it hard to gauge the level of demand.

Rising oil prices and interest rates, trade tensions and uncertainty over Britain's departure from the European Union all pose a risk to an eight-year boom in civil aviation, which has boosted industry order books and share prices.

Boeing's forecasts underscored the sector's reliance on emerging markets in general and China in particular, making the US planemaker especially vulnerable should trade tensions between Washington and Beijing escalate into a full trade war.

Boeing, which calls itself America's biggest exporter, delivered more than one out of every four jetliners it made last year to customers in China, one of the world's fast-growing aircraft markets.