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Sunday, October 28, 2012

Boeing sees $820 billion commercial aircraft market in North America through 2031

Boeing said North American airlines will take delivery of 7,290 aircraft valued at $820 billion through 2031.

In a market forecast presented this week, the manufacturer said the North American commercial fleet will grow from 6,650 aircraft currently to about 8,830 by 2031 (including aircraft retirements).

Boeing Commercial Airplanes VP-marketing Randy Tinseth said, “The long-term outlook for the North American airline industry is approximately 3% annual traffic growth through the forecast period. The market is shaped by aggressive growth of low-cost carriers and the need to replace aging airplanes in the fleets of the established network carriers.”

The manufacturer predicted mainline North American carriers will “maintain strict capacity discipline. Low-cost carriers will continue to outpace network carrier growth to accommodate increased demand and fill some markets abandoned by network carriers.”

Boeing said narrowbody aircraft will comprise 69% of the North American fleet by 2031.

Long-haul international traffic to/from North America will grow at around 5% annually, outpacing the overall pace of growth in the region, Boeing predicted. “The international growth is primarily driven by anticipated passenger traffic to Southwest Asia, China, the Middle East, Africa and South America,” the manufacturer stated. “Passenger traffic between North America and those regions is forecasted grow at or above 6% per year.”

This will require 1,320 new widebody aircraft for North American airlines over the next two decades, Boeing said. However, just 40 of these aircraft will be in the 747-size and larger range, it added.

Boeing noted that the continent’s airlines are operating more cautiously than in the past. “In response to market pressures, airlines are deploying capacity more strategically to help boost yields and cover higher fuel expenses,” it said. “Airlines are optimizing airplane utilization more closely to seasonal demand fluctuations, and passenger load factors remain near historic highs. The number of new-generation airplanes in the parked fleet remains low, indicating that airlines are shifting utilization to their most efficient assets.”

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