Boeing lifts the industry demand forecast as the air show offers roll on

FARNBOROUGH, England (Reuters) – Boeing ( BA.N ) reported on Tuesday his 20-year forecast for passenger and freight aircraft, in the form of a flow Regular trading on the second day of Farnborough Airshow highlighted the resilience of the industry in the face of increasing global trade tensions.

The world's largest manufacturer predicted 42,700 deliveries over the next two decades, up 3% estimate of 41,030 a year ago. This would be $ 6.3 trillion at current prices over last year 's forecast of $ 6.1 trillion. The US group and its European rival Airbus took advantage of the first day of the air show near London, and the Russian airline Volga Dnepr pledged Tuesday to buy Boeing cargo planes worth 11.8 billions of dollars at the list price. a tentative agreement with an unidentified customer for 100 A320 Family aircraft.

But analysts have said that many transactions have strengthened tentative agreements, leaked previously unidentified buyers, or modified existing orders, making it difficult to gauge the actual level of demand.

Rising oil prices and interest rates, trade tensions and uncertainty surrounding the departure of the European Union from the European Union are jeopardizing the boom in the economy. civil aviation for eight years.

Boeing's forecast highlights the sector's dependence on emerging markets in general, and China in particular, making the US planemaker particularly vulnerable if trade tensions between Washington and China degenerate into a complete trade war .

Boeing, which claims to be the largest US exporter, delivered more than one in four jet aircraft manufactured last year to customers in China, one of the largest aerospace markets in the world. full expansion.

Boeing Vice President of Commercial Marketing, Randy Tinseth, said China looks want to overtake the United States as the world's largest domestic air transport market in 10-15 years.

But he refused to be brought to comment on US trade policy saying, "We will focus on what we can control."

To see a chart on Airbus, Boeing vs US benchmark 2008-2018, click: reut.rs/2JtcJG2

INTENSIFYING COMPETITION

Dominant Boeing, forecasts were optimistic: single-aisle aircraft, such as Boeing 737 and Airbus A320, should post an increase of 5%, supported by an average forecast unchanged. global traffic growth of 4.7 percent.

The Chicago planner now has 31,360 deliveries in the medium-haul one-aisle category, the cash cow of two of the world's largest planners and popular with low-cost airlines. Two weeks ago, Airbus ( AIR.PA ) increased by more than seven percent its own mobile forecasts for industry deliveries and reorganized the way to forecast demand, introducing new categories of aircraft. And blur the traditional boundaries between the types of planes. Boeing's Tinseth said that Airbus was seeking to show that it was gaining a sizeable share of the aircraft market. "Let me clarify one thing," Tinseth said. "By all means, in any case, our large bodies are gaining." Despite everything, Boeing has lowered its forecast of wide-body delivery of 140 aircraft to 8,070, saying that higher deliveries in the past year and Longer-aisle single-aisle aircraft fluctuated and Boeing saw a slight increase in freight market demand, a barometer of commercial and commercial confidence, with 980 new cargo ships compared to 920 a year ago. fueled by growth in e-commerce, particularly in China The planemaker unveiled a flurry of freight orders in the first two days of the Farnborough show.

The total number of Boeing forecasts is higher partly because It has 90 or more airplanes, while Airbus starts at 100 seats.Airbus has concluded its biggest upheaval in decades after Airbus has entered into a deal for the purchase of the aircraft. Bombardier CSeries aircraft ( BBDb.TO ) from 110 to 130 seats, reflected last week by Boeing's attempt. the acquisition of the commercial unit of the Brazilian company Embraer SA ( EMBR3.SA ). Boeing has trimmed its forecast for the regional jet fleet to 2,320 deliveries. Analysts expect Boeing and Airbus to use their scales to pressure suppliers to cut costs, which could lead to consolidation. Tinseth said that Boeing's market assessment could change if regional aircraft became "much more efficient or much cheaper to operate, and maybe pricing could change." "At any time, demand will go where the potential cost is the lowest. he added.