2013-2031 aviation and aerospace market outlook by boeing
TRANSCRIPT
C t M k t O tl kR d Ti th
Current Market Outlook2013-2032
Randy TinsethVice President, MarketingBoeing Commercial Airplanes
June 2013
Copyright © 2013 Boeing. All rights reserved.
The statements contained herein are based on good faith assumptions and provided for general information purposes only. These statements do not constitute an offer, promise, warranty or guarantee of performance. Actual results may vary depending on certain events or conditions. This document should not be used or relied upon for any purpose other than that intended by Boeing.
Boeing is a trademark of The Boeing Company.
A focus on efficiencyAgenda
Copyright © 2013 Boeing. All rights reserved.
A focus on efficiency20-year traffic and airplane forecast
Boeing product strategy & development
Oil prices expected to remain elevated and volatile
Spot $/Barrel (Brent Crude Oil / Rotterdam Jet Fuel) ¢/Gallon
450
160
180
400
350
300120
140
160
Jet Fuel 300
250
20080
100
120
150
40
60
B t C d Oil
Historical data source: EIA
202003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Brent Crude Oil
Copyright © 2013 Boeing. All rights reserved.
Historical data source: EIA
Fuel has doubled as a percentage of airline costs* over the past 10 years
2003
15%25%
2003Fuel price:
US $0.82/gal
Single-aisle Wide-body
2013
Single-aisle Wide-body
30%
50%Fuel price:US $2.73/gal
50%
Copyright © 2013 Boeing. All rights reserved.
*Cash operating cost, typical rules, representative aircraft
New technology and intense competition continue t h i li i ld d dto push airline yields downward
er s
eat-m
ileC
ents
p
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Airlines are focused on efficiency
Operations Network / revenue New airplanes, technologies
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g
Impacts of efficiency push on the future
Efficient use of assets Modest up-gauging Continued replacement demand
Copyright © 2013 Boeing. All rights reserved.
p
A focus on efficiencyAgenda
Copyright © 2013 Boeing. All rights reserved.
A focus on efficiency20-year traffic and airplane forecast
Boeing product strategy & development
Why the Current Market Outlook (CMO)?
Product strategy
Long-range business plan
Suppliers and airline customers
Copyright © 2013 Boeing. All rights reserved.
Boeing forecast accuracyFleet consists of all jet aircraft with at least 90 seats
• Accurate despite market dynamics
Fleet consists of all jet aircraft with at least 90 seats
8,000
10,000
2003 CMO
Medium-term
Actualdynamics
• Long-term forecasts have b ti 2 000
4,000
6,000
2003 CMOForecast
been more conservative
• Single-aisle segment has
0
2,000
2003-2012
Long termexceeded expectations
• Large aircraft and regional 12 000
16,000
20,000Long-term
1994 CMOActual
Large aircraft and regional jet segments have underperformed
4,000
8,000
12,000 1994 CMOForecast
Copyright © 2013 Boeing. All rights reserved.
01994-2012Sources: CMO 1994, CMO 2003, ASCEND
Market forecast drivers and considerations
Highspeed
railEnvironmentAirplane
capabilitiesMarket
liberalization
Fueli
Airlinestrategies &
business
rail
Emergingmarketsprice business
models
I f t t Economic
markets
Infrastructure Economicgrowth
CurrentMarket
Outlook2013-2032
Copyright © 2013 Boeing. All rights reserved.
Air travel and economic growth are directly related
16 8Percent annual change passenger traffic Real GDP growth
8
10
12
14
4
5
6
7
2
4
6
8
1
2
3
4
Long-term traffic growth
-4
-2
0
-2
-1
0
1971 1976 1981 1986 1991 1996 2001 2006 2011
Pax airline traffic growth GDP
Copyright © 2013 Boeing. All rights reserved.
Sources: Traffic growth – ICAO/IATAGDP growth – IMF (PPP)
Drivers of air travel
Economicgrowth
Globaltrade
Travelervaluesgrowth trade values
60-80%Travel
20-40%Additional
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demand travel demand
World air travel has grown 5% per year since 1980
5 0
6.0• 4 recessions• 2 financial crises
4.0
5.0
rillio
ns)
• 2 Gulf wars• 1 oil shock• 1 near pandemic (SARS)
2 0
3.0
RPK
s (tr • 9/11
1.0
2.0
0.01980 1984 1988 1992 1996 2000 2004 2008 2012
Copyright © 2013 Boeing. All rights reserved.
RPKs = Revenue Passenger KilometersSource: ICAO scheduled traffic
20-year forecast: strong long-term growth
World
2012 to 2032
3.2%World
economy(GDP)
Numberof airline
passengers4.1%
5.0%Airlinetraffic
(RPK)
5.0%Cargotraffic(RTK)
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(RTK)
Air travel growth has been met by increased frequencies and nonstops
2.5 Air Travel Growth
WorldIndex 1992=1.00
2.0
Frequency GrowthNonstop Markets
1.5
1.0Average Airplane Size
0.5
Copyright © 2013 Boeing. All rights reserved.
August OAG All routes
Airlines will need more than 35,000 new airplanes l d t $4 8 t illivalued at $4.8 trillion
Airplane deliveries: 35,2802013 - 2032
Market value: $4.8T2013 - 2032
25 000 2 50024,670
15,000
20,000
25,000
1,500
2,000
2,500,$2,290B
$1 100B $1 090B
0
5,000
10,000
0
500
1,000
2,0204,530
7603,300
$80B
$1,100B
$280B
$1,090B
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0Regional
jets6%
Single-aisle70%
Small wide-body
13%
Largewide-body
2%
Mediumwide-body
9%
0Regional
jets2%
Single-aisle47%
Smallwide-body
23%
Largewide-body
6%
Medium wide-body
22%
Older, less efficient airplanes will be replaced with more efficient, newer generation airplanes
40,000
45,000Units
41,24041,240
30,000
35,000
20,930Growth
35,28035,28020,31020,310
20 000
25,000
, Growth59%
15,000
20,000
14,350Replacement
41%
5,000
10,000
5,960Retained fleet
41%
Copyright © 2013 Boeing. All rights reserved.
02012 2032
Retained fleet
Fleet composition will change2032
p g2012
2032
13%7%4% 6%9%
2%
20,310airplanes
13%
12%
7%13%
41,240airplanes
airplanes
64%70%
Copyright © 2013 Boeing. All rights reserved. Data source: Ascend & Boeing CMO
Large wide-body Medium wide-body Single-aisle Regional jetSmall wide-body
Emerging markets are driving the economic growthAnnual GDP growth2012 – 2032
SouthAsia 6.6
4.7
4.5
SoutheastAsiaAsia
Pacific
China 6.4
4.4
3 8
4.0LatinAmerica
Middle
Africa
3.2
3.4
3.8
World
CIS
East
1.8
2.5
2.6
Europe
NorthAmerica
Oceania
Copyright © 2013 Boeing. All rights reserved.
1.8Source:
IHS Global Insight1.6NortheastAsia
Air travel growth varies by market
Within Asia Pacific*
Within North America 2.3%
6.2%2012 traffic
Added traffic2013-2032
Annualgrowth %
Within China
Within Europe
Europe - Asia Pacific
3.6%
5 5%
6.9%
Europe Asia Pacific
North Atlantic
Middle East - Asia Pacific
Within Latin AmericaWorld
Average
5.5%
6 9%
3.5%
7.3%Within Latin America
Trans-Pacific
Within/to CIS
N th A i L ti A i
Average Growth:
5.0%
6.9%
4.5%4.8%
5 0%North America - Latin America
Europe - Latin America
Africa - Europe
5.0%4.7%
4.8%
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0 500 1,000 1,500 2,000 2,500 3,000RPKs, billions*Does NOT include within China
Air travel becoming more diverse geographicallyAir traffic RPKs (billions)Air traffic, RPKs (billions)
16,000
12,000
14,000 Other
Middle East
8,000
10,000 China
Asia Pacific( l Chi )
4,000
6,000(excl. China)
Europe
0
2,000
1992 2012 2032
NorthAmerica
39%
52%73%
Copyright © 2013 Boeing. All rights reserved.
1992 2012 2032
Source: Boeing 2013 CMO
Market for new airplanes to become even more hi ll b l dgeographically balanced
New airplane deliveries by region2013–2032
Market value by region2013–2032
R i $BR i Ai l
39%11%
6%3%
3%
37%7%
8%3%
3%
$
Region $BAsia Pacific 1,890Europe 1,020North America 810
Region AirplanesAsia Pacific 12,820Europe 7,460North America 7,250
17%
21%
21%
21%
35,280 $4.8TMiddle East 550Latin America 300C.I.S. 140Af i 130
Middle East 2,610Latin America 2,900C.I.S. 1,170Af i 1 070
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Africa 130
World Total $4,840BAfrica 1,070
World Total 35,280
World air cargo traffic has grown 5.3% per year since 1980
250
150
200
ons)
100
RTK
s (b
illio
50
01980 1984 1988 1992 1996 2000 2004 2008 2012
Copyright © 2013 Boeing. All rights reserved.
* Revenue tonne-kilometers
N f i ht d d 850 1 450 t d130
New freighter demand -- 850 new, 1,450 convertedDelivery unitsShare of fleet
100%
940640
Large>80 tonnes
Medium40 to 80 tonnes 2,300
40%
60%
80%
210380
2013 t 20322012 2032
Standard<45 tonnes
0%
20%
40%
Converted
Copyright © 2013 Boeing. All rights reserved.
2013 to 2032Freighters
2012Freighters
1,730
2032Freighters2,810
Future freighter deliveries will be led by demand for l id b dilarge widebodies
700
New freighter deliveries: 8502013–2032
Market value: $240 billion2013–2032
250640
400
500
600
700
ane u
nits
arke
t valu
e
$200B
150
200
250640
0
100
200
300
Airp
la Ma
Medium Medium
$40B
StandardLargeStandardLarge 0
50
100210
$0B0
Copyright © 2013 Boeing. All rights reserved.
Medium 40 to 80tonnes25%
Medium40 to 80tonnes17%
StandardLess than 45 tonnes
LargeMore than80 tonnes
83%
StandardLess than45 tonnes
LargeMore than 80 tonnes
75%
A focus on efficiencyAgenda
Copyright © 2013 Boeing. All rights reserved.
A focus on efficiency20-year traffic and airplane forecast
Boeing product strategy & development
More value to our customers in all markets
• Environmentally progressive • Passenger experience
More value to our customers in all marketsEfficiency designed-in from the start
• Long-range, fast, reliable
O ti l lit
• Low operating cost
St d di ti
Copyright © 2013 Boeing. All rights reserved.
• Operational commonality • Standardization
The Boeing Edge Aviation industry’s largest portfolio of integrated services and customer supportAviation industry s largest portfolio of integrated services and customer support
Acquire
ReadyTransition
OperateRefresh
Maintain
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Substantial, balanced backlog validates Boeing’s product strategy
Backlog ($B)Backlog ($B) ModelModel747
777 Large4%
295
350319 323
Single-Aisle
43%
Twin-Aisle
53%
737
250 256
295
250
300
RegionRegion
53%
767787200
100
150Leasing, Gov't &BBJ
North America
ME,Central
&
0
50L.
America& Africa
Asia Pacific
&S. Asia
China, East &
SE A i
Europe&
Russia
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02009 2010 2011 2012 2013
SE Asia
Things to rememberAirline customers continue to focus on efficiency
Strong demand for new, efficient aircraft; emerging economies leading growth
Things to remember
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“The products that provide the most efficiency will continue to be the products of choice”– Ray Conner, BCA President