U.S. market rose before trading on Monday, focusing on Boeing s forecast for global passenger aircraft in the next 20 years

Monday (June 16) Focus:

Boeing's forecast includes nearly 33,300 single-aisle passenger aircraft, 7,800 wide-body passenger aircraft, 955 factory-made cargo aircraft and 1,545 regional passenger aircraft. Single-aisle jet aircraft mainly include the 737 MAX and its competitor Airbus A320neo series. Currently, about four of every five successfully delivered aircraft are single-aisle jets.

The Boeing Company

Boeing's production quality seems to have improved in recent months, but last Thursday (June 12) a Boeing 787-8 aircraft crashed, putting Boeing's safety management in question again.

Boeing's forecast for a year later has slightly decreased, mainly because its forecast for passenger volume growth in the next 20 years has been lowered from 4.7% outlook last year to 4.2% this year. Similarly, Boeing also lowered its global economic growth forecast, down from 2.6% last year's forecast to 2.3%; freight volume growth forecast to 3.7% from 4.1%, and fleet size growth forecast to 3.1% from 3.2%.

Nevertheless, Darren Hulst, vice president of commercial aircraft marketing at Boeing, believed at the briefing that trade volatility would not significantly change long-term demand.

Boeing's vice president of commercial aircraft marketing said that since the end of the epidemic, air travel demand has rebounded, but the production of aircraft is only half of what it was before the epidemic or even lower, resulting in a shortage of 1,500 to 2,000 aircraft in the passenger aircraft market at this moment. (Bloomberg)

He said that since the end of the epidemic, air travel demand has rebounded, but the production of aircraft is only half of what it was before the epidemic or even lower, resulting in a shortage of 1,500 to 2,000 aircraft in the passenger aircraft market at this moment.

Pre-market trading focus:

Although Boeing is working hard to restore aircraft production to pre-pandemic levels, Boeing has been dealing with safety issues after Alaska Airlines' almost brand new 737 MAX aircraft exploded in the air in 2024. Because of this incident, the Federal Aviation Administration limited the monthly production of Boeing's 737 aircraft to 38.

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Boeing's European rival Airbus, on the other hand, raised its forecast for 20-year commercial airliner demand for global markets by 2% to 43,420 last week. Airbus expects the air transport industry to survive the current trade tensions.

According to the global 20-year demand for commercial passenger aircraft released by Boeing before the Paris Air Show on Sunday (June 15), global air travel demand will grow by more than 40% by 2030. Moreover, by 2044, the global demand for new passenger aircraft will reach 43,600. However, this figure is slightly less than Boeing predicted last year that the global delivery of new passenger aircraft will reach 43,975 by 2043.

Market participants generally predict that the Fed will keep interest rates unchanged at its meeting this week. Market investors also bet that the United States will reach a trade agreement with China and others. All this drove major index futures in the Wall Street stock market to rise on Monday (June 16). At the time of 7:00, the Standard & Poor 500 futures rose 28.60 points or 0.48% to 6005.60 points; the Nasdaq 100 futures, dominated by technology stocks, started 126.30 points or 0.58% to 21,757.30 points; the heavyweight Dow Jones Index futures also rose 154.20 points, 42,352.00 points. Iran launches missiles at Israel to respond to Israel's fierce attacks, raising tensions in the Middle East. Major stock indexes in the US Wall Street stock market also fell across the board at the close of last Friday (June 13). The Standard & Poole 500 fell 27.05 points last Friday and closed at 4730.61 points. The Dow Jones Index fell by 184.41 points and closed at 37098.99 points. The Nasdaq 100 also fell 0.96% or 120.84 points, closing at 20,484.32 points. The U.S. stock market was trading on Friday, with the total trading volume on the exchange being 17.9 billion shares, which is less than the average trading volume of 18.2 billion shares in the past 20 days.

Currently, Chinese customers account for about 10% of Boeing's existing order backlog. Chinese customers have suspended the reception of new Boeing aircraft due to a conflict between China and the United States over tariffs. However, Boeing CEO Kelly Ortberg said at an investor meeting in May that aircraft delivery work for Chinese customers is expected to resume this month.