Boeing’s scissoring plunges the stock market
Boeing cuts estimates for aircraft sales over the next 10 years as a result of the crisis triggered by the pandemic. Boeing shares collapse on the stock market
Boeing slashes outlook for new aircraft demand and expects the coronavirus pandemic to hurt sales for over a decade.
Specifically, the American aerospace and defense giant believes the world will require 11% fewer aircraft over the next 10 years, mainly due to Covid-19.
This is the estimate contained in the Boeing Market Outlook 2020 released on Tuesday, which predicts that the commercial aviation and services markets will continue to face significant challenges due to the pandemic, while the global defense and government services markets will remain more stable.
Shortly after the report was released, Boeing's stock plummeted on the stock market. The shares fell 11% to $ 159.54.
The US manufacturer was already under pressure from last year's grounding of its best-selling aircraft, the 737 Max, after two fatalities. In 2020, customers canceled over 800 orders 737 Max.
CUT THE ESTIMATE FOR THE SALE OF AIRCRAFT
Boeing cuts estimates for aircraft sales over the next 10 years. In the face of the slowdown in growth imposed by the Covid emergency, the demand for aircraft should amount to 18,350 commercial aircraft over the next decade, 11% lower than the comparable forecasts of 2019, estimated at around 2,900 billion dollars.
On the other hand, global travel demand will not return to pre-pandemic levels until 2024. According to a forecast this summer by the International Air Transport Association (IATA), the international organization of airlines to which more than 230 now adhere. carriers.
HOW MANY PLANES DO YOU PLAN TO DELIVER BOEING
Over the long term, with the industry's main drivers likely to remain stable, the commercial fleet is expected to return to its growth trend.
By 2039, Boeing expects to ship 43,110 new aircraft, including three-quarters single-aisle, used for short routes. In last year's forecasts until 2038, the sale of 44,040 aircraft was estimated.
THE TOTAL MARKET OF AIRCRAFT
The BMO expects a total market value of $ 8.5 billion over the next decade, including demand for aerospace products and services. The forecast is down from 8.7 billion a year ago due to the impact of the Covid-19 pandemic. Airlines globally have begun to recover from a more than 90% decline in passenger traffic and revenue, but a full recovery will take years, according to the forecast.
THE FUTURE OF SINGLE AID AIRPLANES
Single-aisle aircraft such as the 737 MAX will continue to be the largest market segment, with operators predicting 32,270 new aircraft over the next 20 years.
Demand for single-aisle aircraft will recover sooner. Thanks to their key role in short-haul routes and national markets, as well as to the preference of passengers for point-to-point service.
THE WIDEBODY QUESTION
In the widebody market, Boeing expects demand for 7,480 new passenger aircraft by 2039.
Widebody demand will be affected by a slower recovery in long-haul markets. Typical after the shocks of air travel, as well as the uncertainties of the impact of Covid-19 on international travel.
POSITIVE NOTE: THE DEFENSE SECTOR
The BMO also expects a $ 2.6 trillion defense and space market opportunity over the next decade. $ 100 billion more than last year's estimate.
Defense has become increasingly important to Boeing due to the suffering of commercial aviation.
In the first half of 2020, Boeing's sales fell 26% to $ 28.7 billion. Its defense and space unit generated nearly 44% of that revenue, compared to 34% of sales in the first six months of 2019.
BOEING'S COMMENT
"While this year has been unprecedented in terms of disruption in our industry, we believe aerospace and defense will overcome these challenges in the short term, return to stability and emerge strongly," said Marc Allen, Boeing's Chief Strategy Officer.
"Airlines globally began to recover from a more than 90% decline in passenger traffic and revenue earlier this year, but a full recovery will take years, according to forecasts," the company added.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/la-sforbiciata-di-boeing-fa-ruzzolare-il-titolo-in-borsa/ on Wed, 07 Oct 2020 05:18:06 +0000.