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June 11, 2013 at 08:20 AM EDT
Boeing Raises 20-Year Airliner Demand Forecast (BA)

Aerospace giant The Boeing Company (BA) announced on Tuesday, prior to next week’s Paris Airshow, that it is upgrading its 20-year airplane demand forecast, as the rise of air travel in Asia should lift the entire industry.

The Chicago-based company said that it expects airlines and freight firms will need 35,280 new jets, worth about $4.8 trillion, over the next two decades as the world’s total fleet doubles. This outlook is 3.8% higher than the company’s previous 20-year outlook.

The company, and the rest of the aerospace industry, is pinning its hopes on the rise of the Asia-Pacific travel market, which should help keep production rates at jet factories rising. However, the company lowered its outlook for the European and North American markets.

“By 2032, Asia-Pacific will be by far the world’s largest travel market,” said Randy Tinseth, vice president for marketing at Boeing Commercial Airplanes, at a news conference.

“There is no doubt the industry’s center of gravity is moving from the U.S. to Asia. Right now, 37 percent of all traffic touches Asia — by 2032 it will approach 50.”

Furthermore, Boeing said passenger and cargo traffic should grow by 5% annually.

Going forward, Boeing faces competition from Airbus, as well as new competition in Canada, China, and Russia.

Boeing shares were down 68 cents, or -0.67%, during pre-market trading on Tuesday. The stock is up +35.67% year-to-date.

The Bottom Line
Shares of Boeing (BA) have a dividend yield of 1.90% based on last night’s closing price of $102.24 and the company’s annualized dividend payout of $1.94 per share.

The Boeing Company (BA) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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