London Daily

Focus on the big picture.
Saturday, Jul 26, 2025

Boeing issues surprisingly upbeat outlook for Chinese aircraft demand

Boeing issues surprisingly upbeat outlook for Chinese aircraft demand

Global demand for new aircraft is likely to be hurt for decades because of the Covid-19 pandemic. Yet Boeing just increased its industrywide Chinese sales forecast for the next 20 years -- above where that estimate stood in pre-pandemic times.
Boeing now expects overall aircraft sales to China be 8,600 new airplanes, valued at $1.4 trillion, over the next 20 years. That estimate is 7% higher than its forecast a year ago.

It's just one example of China's economic recovery outpacing the rest of the world. It's also in stark contrast to the falling global demand Boeing forecast just a month ago: On a worldwide scale, Boeing slashed its 10-year outlook for industrywide aircraft sales to 18,530, 11% lower than its 2019 estimate, and cut its 20-year outlook to 43,000 aircraft, down 2% from a year ago.

Boeing regularly issues forecasts for industrywide aircraft demand in different regions of the world.

The company's bullish view of the Chinese market is driven by its expectation that passenger traffic will rise much faster there than the rest of the world. Boeing expects 5.5% annual passenger traffic growth in China during the next 20 years, compared to only 4% annual global growth in passenger traffic worldwide.

"While Covid-19 has severely impacted every passenger market worldwide, China's fundamental growth drivers remain resilient and robust," said Richard Wynne, Boeing's managing director of China marketing.

Wynne cited China's recovery from Covid-19 outpacing the rest of the world, along with continued government investment in transportation infrastructure, a large population to boost air traffic figures and "a flourishing domestic market," all of which "mean this region of the world will thrive."

According to Johns Hopkins University's tracking of global Covid-19 cases, China has had only 922 infections in the last month and three deaths. That compares to 1,893 US Covid deaths on Wednesday alone.

China, which is the world's second largest economy, was the only major world power to avoid a recession this year. The country mounted its relatively quick recovery through several measures, including stringent lockdown and population tracking policies and government funds to boost consumer and infrastructure spending. China's GDP is expected to grow 1.6% this year, while the global economy as a whole will contract 5.2%, according to World Bank projections.

The downturn in global air travel is expected to last until at least 2024, according to the Interntional Air Transport Association -- even if there is a much quicker end to the pandemic, since recessions traditionally cause a long-term drag on air travel. And that has caused a long-term hit to Boeing's prospects.

The company, which has a backlog of orders for nearly 4,300 planes, has nonetheless cut its production targets and is in the process of eliminating nearly 15% of its jobs. Boeing has faced headwinds selling to China in recent years given trade tensions between the United States and China under the Trump administration.

It has booked only one new order since late 2017, two freighters ordered by China Cargo in May, although it's likely that some of its other sales to leasing companies are destined for Chinese customers.

Boeing and rival Airbus (EADSF) have a virtual stranglehold on the market for large commercial jets, although upstart Commercial Aircraft Corporation of China, or Comac, is trying to enter the market.

But Boeing CEO Dave Calhoun told investors last month that he believes Boeing is well positioned to compete for Chinese sales when they bounce back.

"We've had great relationships. We continue to have them," he said. "And the airlines need this kind of lift, and we happen to be one of two people in the world that can deliver it. And that will be that way for quite a while."
Newsletter

Related Articles

0:00
0:00
Close
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
×