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Boeing Company (the) — The Boeing Company — Investor Presentation (July 2022)
26 slides from Boeing Company (the)'s investor presentation, Jul 13, 2022
Slide 1: Commercial Market Outlook 2022-2041
Commercial Market Outlook 2022-2041 Darren Hulst Vice President, Commercial Marketing 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 The
Slide 2: Passenger recovery dynamics: still demand, supply, regulation
Passenger recovery dynamics: still demand, supply, regulation Early pandemic framework still holds, drivers shifting Demand Passengers Health Supply Confidence Airlines Affordability Workforce Fleet decisions Capital Regulation Governments Travel regulation Sustainability Infrastructure Copyright ©
Slide 3: Economic outlook uncertainty rising…
Economic outlook uncertainty rising… Tailwinds Headwinds Accumulated savings High inflation Employment / rising wages Supply chain challenges Business investment Financial market volatility Copyright © 2022 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 13JUL22
Slide 4: …but economy not the key constraint on air traffic near-term
…but economy not the key constraint on air traffic near-term 9/11 & dot-com recession Global Financial Crisis COVID-19 pandemic 100 12 90 10 80 World GDP 70 8 GDP in $ trillions RPKs in trillions 60 World RPKs 50 6 40 4 30 20 2 10 0 0 SOURCES: S&P Global, ICAO, Boeing Analysis Copyright © 2022 Boein
Slide 5: Recovery is multi-speed
Recovery is multi-speed May traffic vs. 2019 levels Rotating growth sources International Domestic Asia Pacific 50% 40% 60% Africa 30% 70% Advanced Domestic economies International 20% 80% Europe Leisure Latin America Emerging 10% 90% markets Middle East 0% 100% North America Business SOURCE: IATA C
Slide 6: Airlines adapting networks
Airlines adapting networks Single-aisle airport pairs Widebody airport pairs 18,000 97% 3,500 served 16,000 3,000 14,000 2,500 77% 12,000 21% served new 10,000 2,000 8,000 1,500 22% new 6,000 1,000 4,000 500 2,000 0 0 2019 Not New 2022 2019 Not New 2022 served served July schedules Copyright © 2022
Slide 7: Airline fleets stabilizing, replacement opportunity evident
Airline fleets stabilizing, replacement opportunity evident Passenger single-aisle Passenger widebodies 18,000 5,000 16,000 98% 14,000 4,000 78% 12,000 3,000 10,000 8,000 2,000 6,000 4,000 1,000 2,000 0 0 base base SOURCES: FlightRadar24, Boeing Data through Week 27 (6/26 - 7/2), normalized with 201
Slide 8: Recovery timeline fundamentally unchanged
Recovery timeline fundamentally unchanged 125% Strong domestic recoveries are 100% currently constrained by China and capacity challenges in US, Europe RPKs in % of 2019 75% International recovery currently 50% Total outpacing expectations led by transatlantic 25% 0% 2018 2019 2020 2021 2022 2023 20
Slide 9: Increasingly competitive airline industry
Increasingly competitive airline industry Mainline jet city pairs with daily service and at least two airlines competing ~60% of markets 2.3X 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SOURCE: OAG/Innovata, mainline jets, at least daily round trip
Slide 10: Families are indispensable to single-aisle operators
Families are indispensable to single-aisle operators 4 sizes 1 size 13% 8% 2 sizes 3 sizes 40% 39% 92% Operate two or more airplane sizes Airlines groups with fleets of 30 or more single-aisles account for 82% of global single-aisle fleet SOURCE: Cirium Fleets Analyzer Copyright © 2022 Boeing. All r
Slide 11: Long-haul single-aisle: niche markets
Long-haul single-aisle: niche markets Single-aisle flights 700,000 All frequencies 1.4X 600,000 500,000 400,000 300,000 200,000 100,000 0.3% Long-haul frequencies 0.2% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 SOURCE: Diio by Cirium, August schedules. Long-haul >3,000sm
Slide 12: Small and medium widebodies gaining share
Small and medium widebodies gaining share Airplane range less dependent on size 100% Large 747 A380 Medium 75% widebody 777 A340 MD11 50% 787-10 A350-1000 Small widebody 25% 787-8/-9 A350-900 A330 767 A300/A310 0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2
Slide 13: Airlines adjusting cabin mix
Change since December 2019 (number of seats) Airlines adjusting cabin mix 4% 3.1% Change since December 2019 (number of seats) 2% 0.1% 0.1% 0% -2% -4% -6% -6.4% -8% First class Business Premium Economy class economy class SOURCE: Cirium Fleets Analyzer, widebody airplanes Copyright © 2022 Boeing. Al
Slide 14: Pandemic disruptions boosting near-term freighter demand…
Pandemic disruptions boosting near-term freighter demand… Traffic at historic highs Belly capacity (ATKs) still down by 1/3 Pricing double 10 Pre-Pandemic Air cargo traffic (RTKs) 263 272 8 Global 254 May 2022 Moving 7-day total 229 6 Dedicated freighters Trans-Pacific 4 2 Widebody passenger belly T
Slide 15: …and structural drivers supporting longer-term freighter demand
…and structural drivers supporting longer-term freighter demand E-commerce network growth Value relative to container GDP shipping Industrial production Trade Evolving supply chain strategies Copyright © 2022 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 13JUL22
Slide 16: 20-year forecast: long-term fundamentals remain intact
20-year forecast: long-term fundamentals remain intact 2.6% World economy (GDP) 3.8% Passenger traffic (RPK) 4.1% Cargo traffic (RTK) 2.8% Fleet growth (jets) Forecast period 2022-2041 Copyright © 2022 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 13JUL22
Slide 17: Airlines will need 41,170 new airplanes over 20 years
Airlines will need 41,170 new airplanes over 20 years 30,880 Latin America Africa 2% Middle East 5% North America 7% 23% By region By type China 21% 2,120 7,230 21% 940 Regional jet Single-aisle Widebody Freighter Asia Pacific 21% 5% 75% 18% 2% Europe Forecast period 2022-2041, Asia Pacific does not
Slide 18: Airlines will need 19,575 new airplanes over 20 years
Airlines will need 19,575 new airplanes over 10 years 14,620 Latin America Africa 2% Middle East 5% North America 7% By region 25% By type China 20% 1,170 3,300 485 21% Regional jet Single-aisle Widebody Freighter 20% Asia Pacific 6% 75% 17% 2% Europe Forecast period 2022-2041, Asia Pacific does not
Slide 19: Global fleet will nearly double; half of deliveries for replacement
Global fleet will nearly double; half of deliveries for replacement 50,000 21,180 47,080 40,000 30,000 25,900 19,990 20,000 10,000 5,910 0 2019 Fleet Retained Replacement Growth 2041 Fleet Fleet* *Retained fleet includes 2020-21 deliveries Copyright © 2022 Boeing. All rights reserved. | CSM | DAH |
Slide 20: Freighter fleet to grow 80% by 2041
Freighter fleet to grow 80% by 2041 New large 4,000 3,610 515 widebodies 3,000 Widebody 2,010 Deliveries 1,300 conversions 2,000 555 2,795 New medium widebodies 1,000 Fleet Standard-body 0 425 2019 2041 conversions Freighters Freighters Forecast period 2022-2041 Copyright © 2022 Boeing. All rights r
Slide 21: The most versatile and efficient aircraft family
The most versatile and efficient aircraft family 777-9 777-8 787-10 787-9 787-8 737-10 737-9 737-8-200 737-8 737-7 100 200 300 400 Seats 500 737 787 777X the most versatile the only complete the next long-haul single-aisle family widebody family market leader Copyright © 2022 Boeing. All rights rese
Slide 22: Boeing freighters are proven and preferred
Boeing freighters are proven and preferred 777-8F 777F 767-300F 767-300BCF 737-800BCF 0 40 80 Tonnes 120 Payload and Industry-leading Most sustainable range for reliability and and most every market performance capable Copyright © 2022 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 13JUN22
Slide 23: Decarbonizing aviation
Decarbonizing aviation Fleet Operational Renewable Advanced Renewal Efficiency Energy Technology
Slide 24: Commercial Services Market Outlook
Commercial Services Market Outlook Digital Training & Solutions & Professional Analytics Services $3.6 trillion 2022-2041 Maintenance, Repair, Overhaul & Modifications Copyright © 2022 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 13JUL22
Slide 25: Download the CMO app for your phone and tablet
Global & Regional Outlook Download the CMO app for your phone and tablet: Regional Passenger Traffic Growth Air Cargo Outlook Copyright © 2022 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 13JUL22
Slide 26: Boeing
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