By Clarence Leong 
 

Boeing Co. has raised its 20-year forecast for the Chinese airline market, projecting that the country would need 8,700 new airplanes valued at $1.47 trillion by 2040, to meet rising air-travel demand.

That compares with Boeing's previous forecast of 8,600 planes.

Noting that the Chinese market has shown resilience during the pandemic, the airplane manufacturer in its annual commercial market outlook Thursday said that market opportunity for commercial aviation services in the region was worth nearly $1.8 trillion.

"The rapid recovery of Chinese domestic traffic during the pandemic speaks to the market's underlying strength and resilience," said Richard Wynne, managing director of China marketing at Boeing Commercial Airplanes.

"In addition, there are promising opportunities to significantly expand international long-haul routes and air freight capacity," he said.

China's economic fundamentals and a middle-income demographic that is expected to double in two decades, were factors underlying the increase in air travel, Boeing said in its outlook.

The company also expects China's domestic traffic to exceed air travel within North America by 2040.

 

Write to Clarence Leong at clarence.leong@wsj.com

 

(END) Dow Jones Newswires

September 23, 2021 02:19 ET (06:19 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Boeing (NYSE:BA)
Historical Stock Chart
From Sep 2021 to Oct 2021 Click Here for more Boeing Charts.
Boeing (NYSE:BA)
Historical Stock Chart
From Oct 2020 to Oct 2021 Click Here for more Boeing Charts.