Boeing (NYSE:BA) has raised its forecast for China's need for commercial airplanes over the next two decades, thanks to the country's strong economic growth and recovery in domestic air travel. The U.S. plane maker stated on Wednesday that China would require 8,560 new commercial airplanes through 2042, an increase from the previous forecast of 8,485, as per the company's annual 20-year forecast.
This upward revision comes on the back of a strong recovery in domestic air traffic after China emerged from strict Covid controls late last year. "Domestic air traffic in China has already surpassed pre-pandemic levels and international traffic is recovering steadily," said Darren Hulst, Boeing vice president of commercial marketing, in a statement.
The growing demand will position China's aviation market as the largest globally and account for one-fifth of the world's plane deliveries over the next two decades, according to Boeing. In their statement titled “Boeing: Fast-growing China domestic air travel driving 20-year demand for 8,560 airplanes,” it was mentioned that China would account for 20% of the global airplane demand through until 2042.
China's commercial airliner fleet is expected to more than double to nearly 9,600 jets over the next 20 years, according to Boeing's Commercial Market Outlook (CMO), the company's long-term forecast of demand for commercial airplanes and related services. This growth is driven by economic expansion well above the global average and increasing demand for domestic air travel.
The company also anticipates that China's domestic aviation market will be the world's largest by the end of the forecast period, thereby powering demand for 6,470 single-aisle airplanes such as the Boeing 737 MAX family. Along with this demand for single-aisle jets, Chinese carriers are expected to require 1,550 widebody airplanes, mainly to support a growing network of international routes.
The forecast also predicts that China's commercial fleet will generate demand for $675 billion in aviation services, including maintenance, repair, training, and spare parts. This growth will drive two-thirds of forecast deliveries in China, while the remainder will replace older jets with modern airplanes that increase efficiency and reduce CO2 emissions.
This year marks the 50th anniversary of Boeing airplanes' service in China. Since 1972, when China ordered 10 707 jets to modernize its commercial fleet, Boeing airplanes have become an integral part of China's air travel and cargo system.
In other related news, the sighting of an Air China (OTC:AIRYY) Boeing 747 at Boeing's South Carolina facilities has sparked online speculation about a potential Air China order with Boeing to be announced in the coming days.
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