Boeing sees aircraft demand rising; expects 3,350 deliveries in Middle East

Boeing Co. has raised its long-term forecast for new airplane demand, projecting the need for 41,030 new airplanes over the next 20 years valued at $6.1 trillion – an increase of 3.6 percent over last year’s outlook.

“Passenger traffic has been very strong so far this year, and we expect to see it grow 4.7 percent each year over the next two decades," Randy Tinseth, vice-president of marketing at Boeing commercial airplanes, said in a statement.

"The market is especially hungry for single-aisle airplanes as more people start traveling by air," Tinseth said.

Overall, the Asian market, including China, will continue to lead the way in total airplane deliveries over the next two decades, the report said.

In the Middle East, Boeing expects 3,350 deliveries over the next 20 years, with a market value of $730 billion.

Single-aisle planes are forecast to account for 53 percent of the total deliveries in the Middle East, followed by medium and large passenger aircraft.

More than 45 percent of deliveries are forecast to be wide-bodied aircraft, Boeing said.

The Middle East is in the “middle” of massive potential as its location allows it to compete for traffic connecting Asia, Africa, and Europe, the report said.

However, the region’s carriers will continue to face the challenge of market access, with airlines facing resistance from incumbent carriers in many countries.

“Recent developments in the United States, United Kingdom, and elsewhere suggest that a return to more protectionist policies is possible,” Boeing said.

“While economic and trade interests weigh against a sustained outcome in this direction, it does remain a risk, one that is a contributing driver of equity investments, strategic partnerships, and alliance membership strategies recently pursued by the region’s airlines,” it added.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com