The Boeing Company (NYSE:BA) released the 2024 Commercial Market Outlook (CMO), which states projects that China will more than double its commercial airplane fleet by 2043.
In particular, the company expects new deliveries of 8,830 new planes in China through 2043.
This expansion aligns with the modernization of the nation's aviation industry to accommodate the increasing demand for both passenger and cargo air travel.
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Boeing predicts China's commercial fleet will grow 4.1% annually, from 4,345 to 9,740 planes by 2043.
Passenger traffic will rise 5.9% annually, outpacing the global average, fueled by expanded airline networks connecting major hubs to smaller cities.
The company anticipates that China will become the world's largest air travel market, fueling demand for single-aisle jets, which will make up over 75% of deliveries.
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The country is expected to also lead in widebody fleets, requiring 1,575 new planes. Additionally, China's freighter fleet is projected to nearly triple, driven by booming e-commerce.
Darren Hulst, Boeing vice president of Commercial Marketing, said, "China's commercial aviation market for passengers and cargo continues to expand, driven by economic growth and airlines building their in-country networks."
"As this forecast shows, China's airlines will see strong demand, requiring further growth of their modern fuel-efficient fleets."
Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Gabelli Commercial Aerospace and Defense ETF (NYSE:GCAD).
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Price Action: BA shares are up 0.10% at $173.66 premarket at the last check Tuesday.
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