Boeing (BA) Lifts Long-term Demand Forecast Amid Signs of Industry Recovery

September 14, 2021 8:10 AM EDT

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Boeing (NYSE: BA) today published an updated long-term demand forecast as the aerospace industry continues to show signs of improvement.

The aerospace giant is now projecting to deliver 43,610 commercial jets over the next 20 years worth $7.2 trillion, up from the prior long-term guidance of 43,110.

"As our industry recovers and continues to adapt to meet new global needs, we remain confident in long-term growth for aerospace," said Boeing Chief Strategy Officer Marc Allen. "We are encouraged by the fact that scientists have delivered vaccines more rapidly than imaginable and that passengers are demonstrating strong confidence in airplane travel."

When it comes to a 10-year outlook, Boing is projecting 19,330 deliveries, again higher than the last year’s forecast of 18,350.

Overall, the updated 10-year project is still 6% lower compared to the one from 2019. The domestic market should recover to pre-crisis levels in 2022, Boeing projects.

"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,” said Stan Deal, president and CEO, Boeing Commercial Airplanes.

Boeing is projecting the annual passenger traffic growth again at 4%. The company has also raised its projection for goods and services in all markets it operates in from $8.7 trillion a year ago to $9 trillion now.

Despite the raised long-term guidance, shares of Boeing are down 0.7% in pre-open Tuesday.

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