Boeing Company (the) · NYSE:BA
Boeing Company (the) — Investor Presentation (June 2023)
34 slides from Boeing Company (the)'s investor presentation, Jun 15, 2023
Slide 1: Commercial Market Outlook
Commercial Market Outlook Darren Hulst Vice President, Commercial Marketing June 15, 2023 Proprietary: The information contained herein is proprietary to The Boeing Company and shall not be reproduced or disclosed in whole or in part except when such user possesses direct written authorization from
Slide 2: Industry recovery progressing broadly as anticipated
Industry recovery progressing broadly as anticipated CMO 2020 Recovery through April 2023 0% -20% RPK vs 2019 in % -40% -60% -80% Industry Domestic International -100% 2020 Industry metric 2023 50% Passenger flights 97% 25% Passenger traffic 90% 2023/2024 Passenger recovery 2023/2024 ~4% Long-term t
Slide 3: Passenger market nearing pre-crisis levels of activity
Passenger market nearing pre-crisis levels of activity Passenger Passenger fleet (active) capacity 97% 92% Passenger Passenger flights traffic 97% 90% SOURCES: Cirium Fleets Analyzer, FR24, IATA; all values for April 2023 vs. April 2019 Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMO
Slide 4: Single-aisle back to growth, widebody recovery at 85%
Single-aisle back to growth, widebody recovery at 85% Single-aisle Widebody 120 120 100 100 80 80 60 60 40 40 20 20 2015 2019 2023 0 0 Asia Pacific Africa & Europe Americas Asia Pacific Africa & Europe Americas Middle East Middle East SOURCE: Cirium Diio, ASMs in billions for June of each year Copyr
Slide 5: Economic fundamentals steady despite slowing growth
Economic fundamentals steady despite slowing growth Consumption… resilient Inflation… improving Financial sector… sound Policy interest rates Global CPI US US services consumption Eurozone Japan 2020 2021 2022 2023 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 SOURCES: US BEA, S&P Global Market
Slide 6: Demand not constraining recovery
Demand not constraining recovery Policy Labor Supply chain harmonization availability stability Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JUN23
Slide 7: Global middle income household growth supports air travel demand
Global middle income household growth supports air travel demand 700 2020 2040 >500 million 600 Household growth in the “global middle” 500 and above Households (millions) 400 300 200 100 0 up to 2 2 to 5 5 to 10 10 to 20 20 to 35 35 to 70 70+ Household income (2015 US$ in 000s) SOURCES: Oxford Econ
Slide 8: Airfares are rising but less than other leisure and travel categories
Airfares are rising but less than other leisure and travel categories 200 180 160 140 120 100 80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Airfare Food Lodging Sports Movies Index (2000 = 100) SOURCE: US BLS Copyright © 2023 Bo
Slide 9: Air travel adds value on longer trips
Air travel adds value on longer trips Capacity (Available Seat Miles) 140 120 +5.1% annually 100 80 Billions >500 miles 60 40 20 0 <=500 miles 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SOURCES: OAG & Cirium Diio
Slide 10: Airline and network trends
Airline and network trends LCC Network Cabin Net growth flexibility optimization zero Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JUN23
Slide 11: Low cost carriers leading single-aisle fleet growth
Low cost carriers leading single-aisle fleet growth LCC ~6X 2042 2.5X 2022 2002 Network Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JUN23
Slide 12: Airlines adapting to evolving demand
Airlines adapting to evolving demand % of peak day frequencies 100% 95% 2019 2023 90% Monday Tuesday Wednesday Thursday Friday Saturday Sunday SOURCE: Cirium Diio, average seat share of week 3 of each month Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JUN23
Slide 13: Versatility broadening passenger widebody networks
Versatility broadening passenger widebody networks More widebody airports… 628 602 544 500 …across a wide range of missions 400 300 200 100 0 SOURCE: Cirium Diio, mission distances in kilometers Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JUN23
Slide 14: Airlines deploying more premium cabin seating
Airlines deploying more premium cabin seating Single-aisle Widebody 14% 12% 11% 10% 9% 8% 5% 5% 2019 2023 Domestic domestic International international Domestic domestic International international Single aisle Widebody SOURCE: Cirium Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMORO
Slide 15: Airlines prioritizing sustainability initiatives
Airlines prioritizing sustainability initiatives Fleet renewal Increased SAF sourcing Technology investment Decline in active fleet since 2019 0% 300+ million liters produced MD80 / 717 A330 in 2022 737NG A320ceo -25% 130+ renewable fuel 767 747 / A380 projects announced -50% 57 offtake agreements a
Slide 16: Fleet trends
Fleet trends Simplification Pent-up replacement Regional jet headwinds Disruptive technology Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JUN23
Slide 17: Airlines simplifying fleets
Airlines simplifying fleets Number of airplane families removed 3+ 2 75 1 airlines phased out at least one family from their active fleet 2019 to 2023 SOURCE: Cirium, in-service aircraft for airlines with >30 active airplanes Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JU
Slide 18: Fleet renewal underway
Fleet renewal underway Status 2019 Status 2023 In Service 90% In Service 84% Long storage Long Storage New 10% 10% Retired Storage Short storage 10% 6% SOURCES: Cirium Fleets Analyzer and Boeing Analysis *1% of 2019 has been converted to freighters Copyright © 2023 Boeing. All rights reserved. | CSM
Slide 19: Single-aisle fleet renewal gaining momentum
Single-aisle fleet renewal gaining momentum Global scheduled single-aisle capacity (ASKs) 1,500 Current generation 1,200 21% Billions 900 600 Recent generation 300 Older generation 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 SOURCE: Cirium Diio, ASKs =Available Seat Kilometers Copyright
Slide 20: Regional jet capacity challenges
Regional jet capacity challenges 700 Number of routes flown on regional jet by market size 600 500 400 -48% -14% 300 200 -21% Pre-pandemic 100 Current 0 Small markets Medium markets Large markets SOURCES: Cirium Diio, US airline majors Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOR
Slide 21: Disruptive investment below jet markets
Disruptive investment below jet markets Airport—Airport >200 miles & >19 seats Air Taxis – Inter Urban $16 Billion invested Complementary applications to airline business models and travel experience Airport—Airport <200 miles & Jets and turboprops <90 seats = ~2% of global, <19 seats so minimal imp
Slide 22: Air cargo: long-term growth amid cyclical volatility
Air cargo: long-term growth amid cyclical volatility 35% 75,000 25% Cargo Tonne Kilometers (CTKs) Change, % 15% 60,000 World CTKs (000) +3.5% 5% annually -5% 45,000 -15% -25% 30,000 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q
Slide 23: Trade growth volatile near-term, outperforming GDP over time
Trade growth volatile near-term, outperforming GDP over time Trade +90-95% 3.0% annual growth GDP +70% 2.6% annual growth 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 SOURCES: S&P Global GTAS Forecasting, Boeing Analysis Copyright © 20
Slide 24: Evolving supply chains support air cargo growth
Evolving supply chains support air cargo growth 250 84%▲ 200 East Asia tonnes to US, thousands 150 79%▲ 101%▲ 100 50 0 Vietnam Thailand Malaysia SOURCE: US Department of Commerce Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JUN23
Slide 25: E-commerce boosting express freighter fleets
E-commerce boosting express freighter fleets Added 2019 2020-2022 775 266 20+% 83 growth 6 Freighter aircraft operated by or for express carriers and e-commerce companies SOURCE: Cirium Fleet Analyzer Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 15JUN23
Slide 26: Steady long-term forecast driven by fundamentals
Steady long-term forecast driven by fundamentals World economy (GDP) Passenger traffic (RPKs) Cargo traffic (RTKs) Fleet (jets) US$92T 6 trillion 260 billion 24,500 2022 2022 2022 2022 US$155T 20 trillion 630 billion 48,600 by 2042 by 2042 by 2042 by 2042 SOURCE: Boeing CMO Copyright © 2023 Boeing.
Slide 27: Air travel demand drives passenger fleet needs
Air travel demand drives passenger fleet needs Increasing regional traffic balance Diverse growth / replacement needs 6,000 14,000 12,000 5,000 2042 fleet 10,000 2042 traffic 4,000 8,000 3,000 6,000 2,000 2022 traffic 4,000 2022 fleet 1,000 2,000 0 0 Americas Eurasia Asia Pac China Africa & Americas
Slide 28: Airlines will need 42,595 new airplanes over 20 years
Airlines will need 42,595 new airplanes over 20 years Latin America Africa 32,420 Middle East Eurasia By region By type China 1,810 7,440 925 North America Regional jet Single-aisle Widebody Freighter 4% 76% 18% 2% Asia Pacific SOURCE: Boeing CMO Copyright © 2023 Boeing. All rights reserved. | CSM |
Slide 29: Future fleet would be ~20% larger without productivity improvements
Future fleet would be ~20% larger without productivity improvements Higher average seating Increasing total fleet productivity +7% 300 200 +6% Fleet 100 2022 2042 0 Single-aisle Small/medium widebody 2022 2027 2032 2037 2042 SOURCE: Boeing CMO Copyright © 2023 Boeing. All rights reserved. | CSM | DA
Slide 30: Global fleet will double, with half of deliveries for replacement
Global fleet will double, with half of deliveries for replacement 50,000 ~21,000 48,575 40,000 30,000 ~2,500 excess parked ~21,000 20,000 24,500 (active) 10,000 0 6,000 2022 Fleet Retained Fleet Replacement Growth 2042 Fleet SOURCE: Boeing CMO Copyright © 2023 Boeing. All rights reserved. | CSM | DA
Slide 31: Growing freighter fleet supporting supply chains, express demand
Growing freighter fleet supporting supply chains, express demand 4,000 3,745 Large 650 widebody 3,000 2,270 Deliveries 1,290 Medium 2,000 2,825 widebody 1,000 885 Standard-body Fleet 0 2022 2042 Freighters Freighters SOURCE: Boeing CMO Copyright © 2023 Boeing. All rights reserved. | CSM | DAH | CMOR
Slide 32: Growth and replacement drive services and labor needs
Growth and replacement drive services and labor needs $3.8T in Services 2,277,000 New Personnel Training & Pilot Services 5% Africa & Middle East 13% Americas Digital Solutions 24% & Analytics Parts & 26% Distribution Services 39% China 19% Eurasia 23% Asia Pacific Maintenance, Repair, Overhaul & Mo
Slide 33: Versatility key to future aircraft market needs
Versatility key to future aircraft market needs 777-9 777-8 787-10 787-9 787-8 737-10 737-9 737-8, -8-200 737-7 100 200 300 400 Seats 500 737 787 777X the most versatile the only complete the next long-haul single-aisle family widebody family market leader Copyright © 2023 Boeing. All rights reserve
Slide 34: Q SOEING
Q SOEING