Boeing says pandemic will cut demand for planes for a decade

Boeing says pandemic will cut demand for planes for a decade

Boeing has lowered its expectations surrounding demand for brand new planes for a decade as the COVID-19 pandemic goes on to reduce air travel.

On Tuesday, the company predicted that there will be a need for 18,350 new planes in the world in the coming decade, a fall of 11 per cent from its previous year’s prediction.

The market’s value will drop by around USD 200 billion from the previous year’s prediction, to around USD 2.9 trillion. Boeing majorly abided by its forecast for a long-standing demand, predicting an increase in air travel through Asia would aid in creating a market that can accommodate over 43,000 air planes in the coming 20 years, a slide by 1,000 from the company’s previous year’s outlook.

Boeing Co, which with Airbus dominates the airplane-building industry, has observed orders as well as deliveries of brand new aircrafts going down this year. Chicago-based Boeing was under pressure already from grounding past year of its highest-selling airplane, 737 Max, post 2 deadly air crashes.

The firm has gone through a lot of downfall during the ongoing pandemic, with the airlines having more aircrafts than what they really need. Being has even cut several jobs this year.