FARNBOROUGH, (Reuters) – Boeing raised its rolling 20-year industry forecast for passenger and cargo aircraft yesterday, as a steady flow of deals on day two of the Farnborough Airshow underscored the industry’s resilience to rising global trade tensions.
The world’s biggest planemaker predicted 42,700 industry deliveries over the next two decades, up three percent from its estimate of 41,030 a year ago. That would be worth $6.3 trillion at list prices versus last year’s $6.1 trillion forecast.
The US group and European rival Airbus saw brisk trade on the opening day of the air show near London, and that continued yesterday, with Russian airline Volga Dnepr committing to buying Boeing freighters worth $11.8 billion at list prices, and Airbus announcing a provisional deal with an unidentified customer for 100 A320 family jets.
But analysts said many of the deals firmed up provisional agreements, disclosed previously unidentified buyers or changed existing orders, making it hard to gauge the true level of demand.
Rising oil prices and interest rates, trade tensions and uncertainty over Britain’s departure from the European Union all pose a risk to an eight-year boom in civil aviation, which has boosted industry order books and share prices.
