Boeing CEO says travel demand recovery is ‘extra resilient’ than he imagined


A Boeing 777x is displayed through the International Paris Air Show on the ParisLe Bourget Airport, on June 20, 2023.

Geoffroy Van Der Hasselt | AFP | Getty Images

Boeing CEO Dave Calhoun is optimistic concerning the recovery of travel demand, which he stated is stronger than he anticipated.

“Yes, it is resilient. It’s extra resilient than I ever would have imagined popping out of Covid — a number of pent up demand for simply passenger visitors and tourism, and companies coming again,” Calhoun advised CNBC’s “Squawk Box Asia.”

Calhoun stated order books and demand for proposals to fulfill that demand are “as strong as [he’s] ever seen in his profession.”

When requested about swirling recession fears, he stated these considerations aren’t actually popping up within the aviation trade.

If something, that is the difficulty we’re all wrestling with: how does the availability chain regain the resilience it had earlier than Covid in order that it could actually meet these calls for.

Dave Calhoun

CEO of Boeing

“If something, that is the difficulty we’re all wrestling with: how does the availability chain regain the resilience it had earlier than Covid in order that it could actually meet these calls for,” he stated.

Boeing delivered 35 planes in August, down from 43 aircraft in July. Both Boeing and rival Airbus stated provide chain constraints are curbing their talents to ramp up manufacturing.

In May, the World Travel & Tourism Council had forecast that the worldwide travel and tourism sector is not going to attain full recovery this 12 months. And whereas China’s domestic airline capacity has fully recovered, worldwide flight capability is nonetheless much less than half of pre-pandemic ranges, a Skift Research report confirmed.

Still, Calhoun stated, “I’m truly bullish with respect to my firm, and China.”

“They want extra elevate like all people else on the planet,” he stated, including that he hopes the geopolitical considerations surrounding China will “start to dissipate a bit.”

As for competitors from China’s homegrown C919 jet produced by Comac, Calhoun stated it should take a “fairly very long time” earlier than it turns into a critical competitor globally for Boeing or Airbus. And even when that was the case, it will not be the “worst factor,” given travel demand.

“We have a large strong market rising at a really wholesome tempo,” he stated. “So by 2050, truthfully, having three rivals to fulfill that is it is not the worst factor on the planet for for aviation. In truth, I view it as a superb factor.”



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