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Boeing Company (the) — The Boeing Company — Investor Presentation (July 2024)

31 slides from Boeing Company (the)'s investor presentation, Jul 16, 2024

Slide 1: Commercial Market Outlook
Commercial Market Outlook 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 Boeing Com
Slide 2: Believe it or not, traffic is where it was projected
Believe it or not, traffic is where it was projected 12 10 8 RPKs (trillions) 6 4 2 0 1997 2016 1990 1991 1992 1993 1994 1995 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 RPKs = Revenue Passenger Kilometer
Slide 3: Macro-fundamentals remain supportive
Macro-fundamentals remain supportive GDP growing Inflation Interest rates steadily decelerating falling 6% 6% 3% 3% 3% 5% 5% 3% 4% 2023 2024 2025 2023 2024 2025 2023 2024 2025 SOURCES: S&P Global Market Intelligence, Boeing analysis Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL
Slide 4: Travel remains a top priority
Travel remains a top priority 84% will 66% will travel Trip lengths will be 1 day prioritize more longer travel in their budget than pre-pandemic than before 2020 SOURCES: McKinsey, eDreams ODIGEO, Mastercard Economics Institute Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 1
Slide 5: Aviation is an enabler in an increasingly connected world
Aviation is an enabler in an increasingly connected world 2003 Current 40 million 1.9 billion 1.4 billion 8.9 billion $215 billion ~$850 billion Websites Smartphones Global remittances Booking & research Convenience Family visits Experiences Social media Economic growth Connections Connections Conne
Slide 6: Multi-speed passenger traffic growth
Multi-speed passenger Economic / traffic growth income levels Maturing Connectivity, Infrastructure US domestic breadth of and modal network competition Transatlantic Intra-Europe Intra-SE Asia Airline Innovation competition, and service Domestic India affordability levels SE Asia - India Geography
Slide 7: Global network has doubled since 2004, remains dynamic
Global network has doubled since 2004, remains dynamic Total industry routes 2024 2004 net added All routes airport 2.1X airport pairs pairs Single-aisle 2.3X Widebody 1.3X - 6,000 12,000 18,000 24,000 Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 8: 90% of routes have competition
90% of routes have competition Routes served by two or more airlines 90% 73% 37% Route share Seat share Revenue share SOURCES: Schedules via Cirium Diio, DDS (IATA), Boeing Analysis Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 9: Air travel remains affordable
Air travel remains affordable Passenger yields vs. global consumer prices (2004 = 100) 250 Traffic 200 CPI 150 100 Yield 50 0 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 SOURCES: IATA, S&P Global Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 10: Fleet efficiency continues to improve
Fleet efficiency continues to improve Commercial aviation fuel efficiency trends 0.14 New technology Fuel consumption (Gallons / Revenue Tonne Kilometer) Since 2004 (-2%) 0.12 Load factors 0.10 Historical Densification 0.08 0.06 Productivity Pre-pandemic trend (-2.6%) 0.04 Network 0.02 Regulations -
Slide 11: Differentiation increasing: premium economy seat share up on major long-haul flows
Differentiation increasing: premium economy seat share up 10% on major long-haul flows Transatlantic Europe-Asia Transpacific 32% 30% 22% 24% 20% 15% 2019 2023 2019 2023 2019 2023 SOURCES: 2023 Cirium Diio FMTraffic, Cirium Diio, Cirium Fleets Analyzer, Boeing analysis Premium economy seat share, pr
Slide 12: Airlines managing profitability in volatile market
Airlines managing profitability in volatile market Operating profit: 60 +$17 billion 57 52 54 Net profit: +$4 billion Profit per passenger: +6% Unit costs Unit revenues (cents per ATK*) (cents per ATK) 2019 2024 *ATK: Available Tonne Kilometers SOURCE: IATA Industry Outlook, June 2024 Copyright © 20
Slide 13: Global air cargo traffic continuing strong recovery
Global air cargo traffic continuing strong recovery 24 +13% 23 2024 Year to date vs. 2023 22 Trade growth recovering Global CTKs, Billions 21 2019 Semiconductor demand rising 20 19 2023 Inventories normalizing 18 E-commerce growth 17 Maritime shipping disruptions 16 Jan Feb Mar Apr May Jun Jul Aug S
Slide 14: Key drivers supporting air cargo momentum
Key drivers supporting air cargo momentum Trade, manufacturing up Supply chain resilience E-commerce boosting growth Global semiconductor trade ($ billion)* 100% 99.6% Global e-commerce sales ($ trillion) 1600 777F reliability $8 +62% 80% +112% 1200 $6 Reliability 60% Container shipping 52.1% 800 $4
Slide 15: E-commerce boosting air cargo demand
E-commerce boosting air cargo demand Emerging platforms shipping 10,000+ tonnes per day Equivalent to 100 777Fs daily SOURCES: IATA Monthly Statistics; CAAC; Boeing analysis. Cargo Facts. Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 16: Global fleet is progressing along road to recovery
Global fleet is progressing along road to recovery Current End of decade Constrained Capacity Increasing Delayed Retirements Normalizing Extended Leases Transitioning Aging Fleets Renewing Returning Productivity Growing Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 17: Airplane supply temporarily constraining retirements
Airplane supply temporarily constraining retirements Annual removal rate from passenger fleet 3.5% 3.0% 2.5% Half of normal 2.0% rate 1.5% 1.0% 0.5% 0.0% 1980-1989 1990-1999 2000-2009 2010-2019 2020-2023 Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 18: So average fleet age is rising
So average fleet age is rising Single-aisle passenger Widebody passenger Widebody freighter 11.3 11.2 17.9 17 10 9.5 2019 2024 2019 2024 2019 2024 SOURCE: Cirium, June data Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 19: Fleet productivity rising, dynamics similar but different
Fleet productivity rising, dynamics similar but different Single-aisle annual growth (2003-2023) Widebody annual growth (2003-2023) Fleet 3.1% Fleet 2.1% Densification Seats 4.8% Up-gauging Seats 1.7% More capable twins, versatility Longer stage Longer stage ASKs 5.7% lengths ASKs 3.1% lengths More
Slide 20: Remarkably accurate forecast
Remarkably accurate forecast Industry deliveries Delivery share by segment 25,000 24% 21% 20,000 Widebody 2004 CMO 15,000 2004-2023 20-year Deliveries Delivery Forecast 59% 70% 10,000 5,000 Single-aisle 17% Regional jet 9% 0 CMO 2004 2004-23 deliveries Copyright © 2024 Boeing. All rights reserved. |
Slide 21: Going forward, productivity gains likely to slow
Going forward, productivity gains likely to slow Passenger Load Factor Airplane Utilization (hours / day) Average Seats / Airplane 100% 12 200 175 80% 10 150 8 60% 125 6 100 40% 75 4 50 20% 2 25 0% 0 0 2003 2023 2043 2003 2023 2043 2003 2023 2043 SOURCES: ICAO, IATA, Boeing Copyright © 2024 Boeing.
Slide 22: Steady long-term forecast driven by fundamentals
Steady long-term forecast driven by fundamentals World economy Passenger traffic Cargo traffic Fleet growth (GDP) (RPK) (RTK) (Jets) 2.6% 4.7% 3.6% vs. 2019 4.1% 3.2% Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 23: Airlines will need 43,975 new airplanes over 20 years
Airlines will need 43,975 new airplanes over 20 years 33,380 By type 1,525 8,065 1,005 Regional jet Single-aisle Widebody Freighter 4% 76% 18% 2% Latin America Africa 3% Middle East 5% Eurasia 7% 22% By region China 20% 22% Asia Pacific North America 21% Copyright © 2024 Boeing. All rights reserved.
Slide 24: World air cargo market to demand more than 2,800 freighters by 2043
World air cargo market to demand more than 2,800 freighters by 2043 810 Standard-body <40 tonnes 2,845 New and 1,250 Medium widebody conversions 40-80 tonnes Large widebody >80 tonnes 785 4,000 3,900 3,000 2,340 2,000 1,000 Fleet 0 2023 2043 Freighters Freighters SOURCE: Boeing Commercial Market Out
Slide 25: Global fleet will double, nearly half of deliveries for replacement
Global fleet will double, nearly half of deliveries for replacement 50,000 40,000 23,420 (53%) 30,000 50,170 20,000 20,555 (47%) 26,750 10,000 6,195 0 2023 In-Service Fleet Retained Fleet Replacement Growth 2043 Fleet Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 26: Decarbonizing aerospace
Decarbonizing aerospace FLEET OPERATIONAL RENEWABLE ADVANCED MARKET-BASED RENEWAL EFFICIENCY ENERGY TECHNOLOGY MEASURES Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 27: Commercial services are critical to the aviation eco-system
Commercial services are critical to the aviation eco-system Today Digital Solutions & Analytics In 20 years 43M Freighter Conversions 85M People Engineering & Modifications People Engine Maintenance 310M Component Maintenance 565M Maintenance hours Maintenance hours Airframe Maintenance 100K Parts &
Slide 28: Growth and replacement drive services and labor needs
Growth and replacement drive services and labor needs $4.4T in Services 2,370,000 New Personnel Training & Pilot Services 4% Africa & Middle East 13% Americas Digital Solutions 24% & Analytics Parts & 28% Distribution Services 38% China 18% Eurasia 24% Asia Pacific Maintenance, Repair, Overhaul & Mo
Slide 30: Designed for efficiency & sustainability
Designed for efficiency & sustainability Offering the most capability & productivity Delivering versatility for a dynamic market Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Slide 31: Boeing
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The Boeing Company — Investor Presentation (July 2024) on 6ix

Boeing Company (the) — The Boeing Company — Investor Presentation (July 2024)

Slide 1: Commercial Market Outlook

Slide 2: Believe it or not, traffic is where it was projected

Slide 3: Macro-fundamentals remain supportive

Slide 4: Travel remains a top priority

Slide 5: Aviation is an enabler in an increasingly connected world

Slide 6: Multi-speed passenger traffic growth

Slide 7: Global network has doubled since 2004, remains dynamic

Slide 8: 90% of routes have competition

Slide 9: Air travel remains affordable

Slide 10: Fleet efficiency continues to improve

Slide 11: Differentiation increasing: premium economy seat share up on major long-haul flows

Slide 12: Airlines managing profitability in volatile market

Slide 13: Global air cargo traffic continuing strong recovery

Slide 14: Key drivers supporting air cargo momentum

Slide 15: E-commerce boosting air cargo demand

Slide 16: Global fleet is progressing along road to recovery

Slide 17: Airplane supply temporarily constraining retirements

Slide 18: So average fleet age is rising

Slide 19: Fleet productivity rising, dynamics similar but different

Slide 20: Remarkably accurate forecast

Slide 21: Going forward, productivity gains likely to slow

Slide 22: Steady long-term forecast driven by fundamentals

Slide 23: Airlines will need 43,975 new airplanes over 20 years

Slide 24: World air cargo market to demand more than 2,800 freighters by 2043

Slide 25: Global fleet will double, nearly half of deliveries for replacement

Slide 26: Decarbonizing aerospace

Slide 27: Commercial services are critical to the aviation eco-system

Slide 28: Growth and replacement drive services and labor needs

Slide 29: Summary

Slide 30: Designed for efficiency & sustainability

Slide 31: Boeing