Jet maker cuts long-term forecast by $200 billion
Commercial aviation and services markets "will continue to face significant challenges due to the pandemic, while the defense and government services markets remain more stable, Boeing said Tuesday in its yearly outlook.
Boeing (BA) lowered its total market-value forecast by $200 billion to $8.5 trillion over the next decade from a year-ago forecast of $8.7 trillion.
"Airlines globally have begun to recover from a greater than 90% decline in passenger traffic and revenue early this year, but a full recovery will take years," Boeing said.
The company forecast a 11% drop in demand for commercial planes in the next decade and, in a separate outlook for the commercial aviation market, said it sees passenger-traffic growth to increase by an average of 4% a year in the next two decades.
Air-cargo demand, "a relative bright spot in 2020," is expected to grow by 4% a year as well, Boeing said. Shares of Boeing have dropped 49% this year, contrasting with gains around 5% for the S&P 500 index.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 06, 2020 12:09 ET (16:09 GMT)
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