Boeing has seen a string of order deferrals in the United States this year as the airline industry battles challenges such as high fuel costs, a senior executive said on Wednesday.
Randy Tinseth, Boeing Commercial Airplanes Vice President for Marketing, said the delays also featured one total cancellation, but the issue was limited to the US market -- which accounts for 10-11 percent of its sales.
"We have seen deferrals in the US market as the airlines look to make significant capacity reductions, but we are pleased to have regional diversity... We have not seen deferrals in other regions," he told reporters.
Airline fuel costs have soared this year alongside record oil prices above USD$140 a barrel, forcing several airlines to cut capacity and increase fuel charges to protect margins.
But Tinseth said Boeing did not expect the tough climate to last -- predicting the value of the new plane market to grow in the long term.
He said the group now valued the market for new commercial planes at USD$3.2 trillion by 2027. That is up from a USD$2.8 trillion 20 year forecast provided last year.
"The forecast takes into account the industry's near term challenges, including a slowing worldwide economy (and) surging fuel prices... This year's forecast is rooted in today's realities, but also recognizes the nature of a long term outlook," Tinseth said.
The company said it expected a smaller fleet size of 35,800 planes in 2027 than it did in its equivalent forecast a year ago, but this was because more companies were replacing older planes than ordering additional new ones.
The percentage of replacement planes grew to 43 percent from 36 percent last year as airlines looked for vehicles with more efficient fuel usage.
