Boeing: World Needs 35,280 New Jet Aircraft

Boeing (NYSE: BA - news) has upgraded its forecast for aeroplane demand over the next two decades, saying the world's airlines will need 35,280 new jets worth £3 trillion.

The new forecast shows a 3.8% increase from Boeing's prior rolling 20-year outlook, anticipating a surge in Asia-Pacific travel that will keep production rates at jet factories rising.

Airlines will need 24,670 single-aisle jets worth £1.47trn at list prices, according to the latest forecast, up from 23,240 forecast last year.

These include the industry's most-sold models like the Boeing 737 and Airbus A320.

But among larger and smaller planes, the trend is for less or flat demand compared with previous forecasts, Boeing said.

The forecast for twin-aisle planes such as the Boeing 777, the troubled 787 and the Airbus A330 and A350 fell 1.5% to 7,830, compared with last year's forecast, Boeing added.

For Boeing 747 and Airbus A380 jumbo jets, the forecast fell 3.8% to 760 planes, from 790 aircraft projected last year.

The forecast for regional jets made by Bombardier (Toronto: BBD-A.TO - news) and Embraer (Stuttgart: A1C2PZ - news) was unchanged at 2,020 aircraft in the period.

It said global passenger traffic will rise about 5% this year, matching the long-term trend, and slightly faster in 2014, Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, said.

On Tuesday morning Heathrow airport reported passenger numbers up 4.7% in May, compared to the same month last year.

Globally, the fleet of commercial aircraft hit 20,310 last year, its first time above 20,000, and is expected to more than double to 41,000 planes by 2032, Boeing said.

Of that fleet in 2032, about 41% will be replacement aircraft for jets coming out of service, 59% will reflect growth in travel and about 6,000 will be jets still in service.

Boeing dismissed concerns that aircraft makers are churning out too many planes, creating a bubble of oversupply.

"Every indicator that we see in the market says that the demand is real and there is a need to increase production," Mr Tinseth said.

Travel within the Asia-Pacific region, including China, will more than triple, far outstripping gains in other regions, the aircraft maker said.

By the end of the two decades, it believes that region's travel will rival travel within Europe, North America and China combined.