Boeing profits update on September 2018 showed that earnings would rise by 8.4% in the forthcoming year. By 2020, Boeing bottom line will likely reach US$8.9b, a rise from the present trailing 12 months of US$8.2b. But when Boeing released their last quarter reports, it was evident that the outlook for the year took a nosedive at the end of the first quarter. So what lies in the future for Boeing? Well, some analysts remain positive about the company. And here is why:
Incredible decision making
You can either choose to compete or innovate. Boeing is undoubtedly the later. Presently, the classic jumbo jets such as the A380 and 747 are getting lesser in demand. This is because the old spoke system and hub and is fading. People no longer fly long haul that much; they prefer to fly P2P on planes like the 767, 777 and 787. Boeing envisioned this and designed new 747s so it can be used as freighter aircraft – smart move. Boeing’s incredible decision making will help them overcome any market challenge.
Profitable aircraft offer from China
The lucrative aircraft offer from China of more than 100 jets, worth over $10 billion. “China’s fleet of commercial aircraft will double over the next two decades, and the nation will need nearly 7,700 new airplanes, valued at $1.2 trillion.”
Extensive contribution in space crafts, cargo planes, and military fighter jets
Boeing still makes the F-15s you see in the news and movies today. According to a senior defense official, “the decision to acquire new Boeing F–15s reveals the Pentagon’s desire to keep Boeing making fighter planes into the next decade.”
“The 2020 budget request includes $1.1 billion to get 8 F-15X planes, the latest variant of a jet the Air Force last acquired a decade ago,” he says.Dennis Muilenberg, Boeing’s Chief Executive, has expressed hope for things to take a definite turn for the company and the ban placed on the 737 Max to be lifted. In terms of safety, Mr. Muilenberg said: “Boeing remains focused on safety and quality. And Boeing is working tirelessly to return the 737 Max to service”. With Boeing making significant steps towards improving the 737 Max jet and getting the ban lifted before the end of this year, the tides would turn in their favor.
“Once the company routinely does what it’s meant to do and carefully, all of the gloom and doom goes away” – Robert Mann, an aviation consultant, and former aeronautical engineer
No doubt, Boeing would make a comeback – the company’s future has never been brighter and assuredly so.