Dj Boeing Corporate Stock Underperforms Tuesday When Compared To Competitors

By Connor Hart

Boeing expects air cargo traffic to double by 2043, driven by the expansion of emerging markets and continued growth in manufacturing and e-commerce.

The aerospace manufacturer maker released its market projections Tuesday at its 2024 World Air Cargo Forecast, which provides a biennial overview and long-term outlook for the air cargo industry.

The global air cargo fleet is expected to rise to 3,900 airplanes by 2043, up from 2,340 freighters last year, the company said. Nearly half of production and conversion deliveries will replace retiring freighters. Due to market needs many older jets will remain in service.

Boeing expects 2,845 freighters to be delivered by 2043. With this increase, the large wide-body freighter fleet will nearly double, driven by demand in high-growth Asian markets.

East and South Asian markets will see the highest traffic growth per year, boosted by expanding economies and consumer demand, the company said. The North America and India regions are also expected to experience high levels of growth.

Write to Connor Hart at connor.hart@wsj.com

The Boeing Company shares are moving lower on Tuesday after the company reported a decline in October deliveries. Here’s what you need to know.

What To Know: According to CNBC, Boeing delivered 14 aircraft throughout October, the lowest number of deliveries since Nov. 2020.

This comes after thousands of Boeing employees agreed to return to work last week, following the approval of a new four-year contract. The agreement includes a 38% wage increase over the next four years, along with enhanced retirement benefits.

Although workers agreed to return to work last week, 737 production was halted until today. The company predicts that that it will take several weeks for production to fully restart.

"It's much harder to turn this on than it is to turn it off," CEO Kelly Ortberg said during the company's quarterly call last month per CNBC. "So it's absolutely critical that we do this right."

Bank of America, in a note, provided its expectations for Boeing’s production ramp up.

The bank said, “Therefore, AAP/AIR projects that production will initially resume in the upper teens, with production potentially returning to pre-strike mid-20s levels during 1Q25.”

Boeing has only made one 737 delivery so far in November. Several deliveries are currently a work in progress but the timeline for completion is unclear.

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BA Price Action: At the time of writing, Boeing stock is moving 2.46% lower at $145.27, according to data from Benzinga Pro.

Image: Image via Shutterstock

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