The Boeing Company (NYSE:BA) disclosed that it forecasts a 3% increase in airplane deliveries over the next 20 years, estimating a need for nearly 44,000 new commercial airplanes by 2043.

The global commercial fleet is expected to grow at an annual rate of 3.2%, slower than air traffic growth, as airlines enhance productivity by raising load factors and utilizing airplanes for more hours each day.

Boeing expects that emerging markets and global single-aisle market demand will be the main growth drivers for the industry.

By geographies, Boeing projects South Asia's passenger traffic to grow by 7.4%, followed by Southeast Asia at 7.2% and Africa at 6.4%. Also, Eurasia will lead airplane deliveries with 22%, while North America and China will each account for 20%.

By 2043, single-aisle airplanes will comprise 71% of the fleet with 33,380 new deliveries, mainly for short- to medium-haul routes.

Read: Boeing's 737 MAX Crisis Ripple Effects Disrupt Airlines, Suppliers

The 2024 Commercial Market Outlook (CMO) forecasts that passenger air traffic will increase by an average of 4.7% annually over the next two decades compared to 2023.

Dan Abraham, senior vice president of Boeing Global Services Commercial Sales and Marketing, commented, "As airlines respond to robust passenger demand, the services market continues to expand, not only as a result of fleet growth, but also with an increased focus on reducing operating costs and deploying efficient and sustainable solutions."

Also Read: Judge Allots Time For Boeing 737 MAX Crash Victims' Relatives To Object Plea Deal: Report

Boeing forecasts a $4.4 trillion demand for commercial services, fueled by maintenance, modifications, and digital solutions that enhance efficiency.

Today, Woodward, Inc. (NASDAQ:WWD) has been chosen to supply rotary actuation solutions for NASA and Boeing's Transonic Truss-braced Wing (TTBW) X-66A aircraft demonstrator.

Last week, Boeing faced yet another challenge as Washington state factory workers voted overwhelmingly in favor of a strike mandate, amid the workers' demand for a 40% raise during their first full negotiation with Boeing in 16 years.

Boeing stock has lost more than 16% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).

Price Action: BA shares are up 0.46% at $180.50 premarket at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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