Boeing sees $15-trillion market for airplanes and supporting services

Based on the current robust market, Boeing projects that airlines will need to order about 42,700 new passenger airplanes worth a total $6.3 trillion to meet demand over the next two decades.

Boeing sees a $15 trillion market for airplanes and supporting services over the next two decades, driven largely by budget carriers and the narrow-body jets they favor to haul travelers.

The bullish annual forecast by the Chicago-based planemaker comes amid nine years of unprecedented growth for aerospace. Air travel is booming as global trade and economic growth in emerging markets from China to Brazil lift about 160 million people into the middle class each year. Boeing’s predictions are derived from a blend of economic and airline-user data. The forecast doesn’t include the potential ripple-effects from near-term geopolitical turmoil or escalating trade tensions, which could significantly change the demand trends.

Based on the current robust market, the manufacturer projects that airlines will need to order about 42,700 new passenger airplanes worth a total $6.3 trillion to meet demand over the next two decades — some 1,700 more aircraft sales than it forecast last year. Nearly three-quarters of the expected sales will be for single-aisle jetliners.

Air Lease, Boeing strike $9.6-billion deal 

US airplane leasing firm Air Lease announced on Tuesday a commitment to order as many as 78 Boeing single-aisle and wide-body airplanes in a deal valued at $9.6 billion at list prices.

Air Lease told a press briefing at the Farnborough Airshow that three 787-9s and the first 20 737 MAX airplanes in the total deal were firm purchases, while the remaining 55 737 MAX airplanes were provisional commitments.

Air Lease said it had flexibility for taking 737 MAX 8 and 9 variants and expected to take delivery between 2020 and 2024, though most of the jetliners would likely be delivered during the latter portion of that time frame.Separately, Air Lease CEO John Plueger said he was convinced, based on conversations with numerous airlines. REUTERS