Boeing's Tinseth Says Air Traffic Rebound Is Boosting Demand for Aircraft
Stock Chart for Boeing Co/The (BA)
Boeing Co., the world’s second- largest commercial planemaker, said a recovery in air-travel demand is bolstering appetite for new jetliner orders.
Passenger traffic will likely grow at the upper end of an earlier forecast of 3 percent to 5 percent this year, Boeing’s marketing chief, Randy Tinseth, said in a Bloomberg TV interview. Orders this year were expected to match the 142 Boeing had in 2009, he said, declining to be more specific before an official announcement due this week.
“Airlines are now looking to firm up options, firm up purchase rights and at buying new planes,” Tinseth said April 16 in Jakarta. “We’re seeing fewer deferrals, we’re seeing fewer delays, we’re starting to have more talks with our airline customers.”
Boeing, seeking to regain the No. 1 title from rival Airbus SAS in 2011, will boost production next year, recovering from cuts decided on last year after the worst recession in six decades pushed 2009 orders to a 15-year low. Airlines globally are expected to shrink their combined loss to a total of $2.8 billion this year, after racking up $9.4 billion in losses in 2009, according to the International Air Transport Association.
Airlines in Asia are likely to place more orders from 2011, with China and India, the world’s two fastest-growing major economies, being the “most promising” markets for the company in the next two to three years, Tinseth said.
Boeing fell 29 cents to $70.50 at 11:43 a.m. in New York Stock Exchange composite trading. The shares have gained 84 percent in the past year.
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.