Boeing lowered its 10-year global market forecast for airplane demand due to the COVID-19 pandemic. The company projects 18,350 commercial planes will be delivered globally by 2029, an 11% decrease from the 2019 projections.
- Boeing also lowered its rolling 20-year forecast and projects it will deliver 43,110 planes by 2039, down 2% from the 44,040 total it projected in 2019. This is the first time Boeing has lowered its 20-year forecast since the 2009 financial crisis.
- Boeing projects the total aerospace market will be worth $8.5 trillion in 2029, $200b less than what it projected a year ago.
- Boeing shares were down 3.6% on Tuesday and are down almost 50% this year. On average, airline and aerospace stocks are down 46% and 40% respectively this year due to the pandemic.
- Total demand for commercial air travel fell by 90% in April. A full recovery is still expected to take a few years.
- Despite the lower projections, Boeing remains confident it will be able to recover from the crisis. The company says it's confident the space, service, and defense market will increase to $2.6 trillion over the next 10 years, helping to offset losses in commercial aviation.