Takin' care of business

ST. LOUIS — I’m here in St. Louis for the annual Boeing investor conference. The 787 paid a visit here over the past couple of days as leg 6 of the Dream Tour wrapped up.


The 787 and the F-15 share a moment during the Dream Tour’s stop in St. Louis. Ed Turner photo.

Now that we’re almost five full months into 2012, I wanted to take a closer look at how the market is fairing so far. We expected 5 percent passenger growth this year, and things certainly seem to be tracking that way. Stability is also starting to come back to the cargo market.

The airlines can take a lot of credit for this year’s success. They’ve been managing their business very well, especially since we’ve seen a lot of risk and uncertainty in the market as well as high fuel prices. First quarter earnings for airlines have also been in line with their expectations.

The strength in the market is also reflected in our own numbers. We currently have 418 net orders for the year with almost 4,000 airplanes in our backlog. Demand continues to come from emerging and developing economies, low cost carriers and the need for replacement aircraft.

Speaking of replacement—here’s a staggering statistic. Every year over the next 20 years, we expect between 2 and 2.5 percent of the world’s fleet will need to be replaced. When you consider there are nearly 20 ,000 airplanes flying today, that becomes a really big number—a key reason we’re moving up our production rates.

It looks to be another exciting year to be in this business. And we look forward to meeting the challenges.

Comments (3)

Greg (Toronto):

I love your taste in music Randy. It takes me back to the day!

This is good news for the entire aviation community. Disciplined approach will be key to future success .

Great photo of the B787 and F15

David Starr (Colorado USA/ now in the Philippines):

Randy, I don't often have much to say here, but keep writing, I read every word. I'm a big Boeing fan since B-52 and C-97 days.

But more than that I'm an American who is still a fan of America.

Especially that segment of our country that actually _Builds_ things instead of "imagineering" ways to manipulate money.

Build On Boeing, Build On!

Norman (Long Beach, CA):

Not a bad way to have 418 aircraft orders in less than a month after the end of the first quarter. The 737 MAX is gaining a lot or orders and the 787 is starting to move along. The future looks good as there has been a lot of talk of a 777X and a 787-10X. I don't know what is going on with the development of the A350-1000, they are loosing orders bad on what have been only scant orders already, something is happening. I also don't expect any new orders on the relatively heavy A350-800. Shrinks like the A318, 737-600, L1011-500 and the 747SP have not sold into the 100s. The 787-8 I think sells well because the capacity that the plane offers is needed and that it is not overly heavy for it's size.

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