Boeing Predicts $1.1 Trillion in Jet Orders

Boeing Co. on Tuesday gave an upbeat forecast of world aircraft orders, predicting airlines will add 16,160 jets worth $1.1 trillion over the next 20 years, paced by growth in the Asia-Pacific market.

The world’s largest commercial aircraft maker said it expects the global fleet to be 23,600 passenger and cargo planes in 2016. At the end of 1996, the jetliner fleet totaled 11,500. Boeing made 7,000 of those aircraft, giving it 61% of the market.

The Seattle-based company projected that 4,060 aircraft currently flying would be retired by 2016.

Bruce Dennis, vice president of marketing for Boeing Commercial Airplane Group, said Boeing hopes to boost its share to 67% of all orders.

To meet the demand, Boeing plans to boost monthly production to a record 40 aircraft a month in the fourth quarter from 22.5 in the 1996 fourth quarter, Dennis told a news conference.

Boeing projected that air travel would grow 4.9% a year between now and 2016.

That growth is slightly lower than the 5.1% Boeing predicted a year ago because of a maturing U.S. market and lower estimates for the Asia-Pacific region.

Annual traffic growth is expected to be fastest in Asia-Pacific, with annual projected growth of 6.6%. The U.S. market will grow by 3.1% a year, while European growth was pegged at 4.4% annually, Boeing said.

“The industry continues on the upswing,” Dennis said.

Of the predicted $1.1 trillion of new orders, one-third of the new business is expected to come from the Asia-Pacific region. North America is expected to account for 28%, Europe 26% and the rest of the world 13%.

Boeing’s stock lost $1.875 to close at $100.25 on the New York Stock Exchange.