Boeing Co (BA) Bullish On Air Traffic, New Orders’ Annual Forecast

Boeing Co (NYSE:BA) remains bullish on the airline passenger traffic and commercial aircraft sales. According to Reuters, the company’s airline passenger traffic is expected to increase by 6% by the end of 2019.

Boeing said that the increased passenger traffic will ultimately lead to aircraft’s increased demand during the year, as the company expects to book 750 more orders of its commercial aircraft.

People familiar with the matter said that the Boeing estimates of increase in passenger traffic is in-line with the figures released by the International Air Traffic Association (IATA), which forecasts the air traffic to increase by 6.3% by the year end. According to Boeing’s officials, the passenger traffic increased by 6% during the fiscal year, 2018 (FY18).

Currently, Boeing is battling with Airbus Group (OTCMKTS:EADSY) in booking most of the new commercial orders. Boeing has so far booked 136 orders, according to its online booking sheet, against Airbus’ total booked orders of 225 aircraft year-to-date. Boeing also announced earlier this week, that it received an order of 46 737 Max commercial aircraft from the Chinese Shenzen Airlines, which will help the company to compete with Airbus.

Boeing is confident that it will book several hundred orders in the upcoming Paris Air Show, scheduled between June 15-21. Earlier this week, it was reported that the company will showcase some its main commercial aircraft including 787-9 Dreamliner, which will then be delivered to Alaska Air Group, Inc. (NYSE:ALK).

Boeing’s vice president, Randy Tinseth said that the company has a lot of work to do, along with many other plans in the pipeline. He also indicated that the company is right on track, with its long-term objective and year-end target. Boeing reported that it plans to showcase its military aircraft in the Paris Air Show, with the aim to book military and commercial aircraft orders. In FY17, Boeing booked total 442 new orders of its commercial aircraft.

Mr. Tinseth further said that considering the current market demand, it is estimated that approximately 160 million people will fly this year, leading to a demand of approximately 900 additional aircraft, excluding the replacements.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.