Boeing Co. (BA) - Get Report shares jumped to the top of the Dow Jones Industrial Average Monday after the planemaker forecast the global aerospace and defense market would grow to nearly $9 billion over the next ten years.
Boeing's Market Outlook, released at the start of the Paris Airshow in the suburb of Le Bourget, said the global market for planes and service platforms would rise by 7.4% from last year's estimate to $8.7 trillion by 2028, with just over a third of that figure pegged to spending on commercial airplanes. Over the next 20 years, Boeing forecasts a $9.1 trillion market for commercial aviation services with annual growth of 4.2%, Boeing said, and an aircraft market of $6.8 trillion.
"Aerospace and defense continues to be a healthy and growing industry over the long term, boosted by strong fundamentals across the commercial, defense and services sectors and demand that is geographically-diverse and more balanced between replacement and growth than ever before," said CFO Greg Smith.
Boeing shares were marked 2.4% higher at $355.50 each Monday, a move that trims their decline since the March 10 Ethiopian Airlines crash to just under 16.4%. That fall has loped more than $38 billion from the group's market value.
Earlier Monday, Boeing executives struck an apologetic tone over two deadly crashes of its flagship 737 MAX heading into the start of the Paris Air Show and insisted that its safe return to action was more important than establishing a speedy timetable.
CEO Dennis Muilenburg told reporters that Boeing had erred in the way it communicated a faulty cockpit light to both customers and regulators, and said it would take time to win back confidence in the plane's airworthiness as a result. He also told CNBC that while "steady progress" was being made on the 737's certification, he would not put a firm date on its return, saying only it would happen "before the end of the year."
"It is important for us to focus on safety, we will get back up in the air when it is safe, that's the most important thing here," Muilenburg said. "We are very confident in the MAX family and the heart of the market where it is located."
Last month, International Air Transport Association director Alexandre de Juniac cautioned that the planemaker's grounded 737 MAX may not return to full service before the end of the summer, while Muilenburg told an investor conference in New York hat the company was focused on "safely returning the MAX to flight" and stabilizing its production rate at 42 units per month.
The FAA itself has said there would be no near-term clearance for the 737 MAX following meetings with national and international regulators in Forth Worth, Texas, on May 23 that focused on Boeing's recent overhaul of its MCAS flight software system.
Boeing officially acknowledged that its software system played a role in two recent deadly 737 MAX 8 accidents.