Boeing hikes 20-year market forecast to $4.5 trillion

Tue Jul 3, 2012 8:15am EDT
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By Helen Massy-Beresford

LONDON (Reuters) - Planemaker Boeing Co (BA.N: Quote) hiked its 20-year market forecast, predicting demand for 34,000 new aircraft worth $4.5 trillion, on growth in emerging regions and as airlines seek efficient new planes to counter high fuel costs.

Many airlines are facing tough conditions as consumers and businesses in austerity-hit regions cut back on travel, while high fuel prices are taking their toll on profit.

"I don't think there's any question that the forecast reflects the economic struggles we see today in some of the mature markets," Randy Tinseth, vice president marketing at Boeing Commercial Airplanes, told a media briefing in London.

The forecast did not take into account a possible collapse of the euro or the exit of any euro member, Tinseth said.

"We're looking at a world economy, where, especially over the next few years, we slog through the situation here in Europe and then once you get into the 2014 time frame and beyond, you see more normal economic growth."

Boeing said on Tuesday the market for new planes would become more geographically balanced over the next two decades, with the Asia-Pacific region leading the way in deliveries, as markets like China and India continued to grow.

The company had last year forecast demand for 33,500 new passenger aircraft and freighters worth $4 trillion by 2030.

"Robust growth in China, India and other emerging markets is a major factor in the increased deliveries over the next 20 years," Boeing said.   Continued...