BOEING CONFIRMS QUICKENING DEMAND IN AIR FREIGHT MARKET

 The global market for airfreight has recovered and will grow above trend through this year, according to Boeing's '2010 Current Market Outlook' report.

Although the aircraft manufacturing company admits that the impact of uncertain fuel prices is hard to predict, it sees a current recovery in both airline profitability and load factors leading to a demand for both more aircraft and newer aircraft.

Boeing forecasts that airfreight will grow at an annual average rate of 5.9 percent over the next 20 years. That represents a slight increase in the average rate seen over the past 30 years. Through 2010, Boeing estimates the market will grow by 14 percent, in what it calls a "growth spike".

According to Boeing, the anticipated long-term growth in airfreight will lead to a parallel increase in the freighter fleet of "more than two-thirds", from the present 1,750 aircraft to 2,980 in 2029. Of the 2029 figure, 740 will be purpose-built new aircraft and the rest converted passenger planes. Most will be large aircraft of more than 80 tonnes capacity and it is here that the market will see the largest number of new purpose-built aircraft entering service.

The geographical distribution of demand will see continuing change, with a large increase in the proportion of aircraft bought by operators outside North America and Europe. For example, Boeing sees the Middle East sector buying 11 percent of all aircraft by value by 2029. 

Boeing's report says the market is being driven by "sound fundamentals – speed and reliability, consumer product innovation and global industrial interdependence".