Boeing Sees Big Demand

It forecasts $2.8 trillion in worldwide aircraft orders over 20 years.
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Boeing (BA) - Get Report rose 2% Wednesday after the plane maker said the market for new airlines would amount to $2.8 trillion over the next 20 years.

The Chicago-based company said strong demand for new airplanes "will lead to a world fleet with significantly improved environmental performance." Boeing said the new airplanes will accommodate a 5% annual increase in passenger traffic and a 6.1% annual increase in air cargo traffic.

The projections come as Boeing releases its

market outlook in London.

"Air travel is going to continue to grow, driven by economic growth, world trade, liberalization, and by the availability of new, more capable and more efficient airplanes," the company said. "This growth will occur in an environmentally responsible and accountable manner that addresses greenhouse gas reduction efforts with progressive new aircraft and increased operational efficiencies in the air transportation system."

The Boeing outlook calls for a market of 28,600 new commercial airplanes (passenger and freighter) by 2026, with a much more balanced demand in aircraft by region over the forecast period.

On a delivery-dollar basis, the largest market is projected to be the Asia-Pacific region, with 36% of the $2.8 trillion total. North America will make up 26% of the delivery dollars, and Europe, Russia, and the Commonwealth of Independent States will make up a total of 25%. Deliveries to airlines in Latin America, the Middle East, and Africa will represent the remaining 13% of the delivery dollars between 2007 and 2026.

The news come as rival Airbus struggles to get its revamped long-range midsize plane, the A350, off the ground.

Boeing rose $1.55 to $98.03.