The Strategist

Head of Boeing expects slow recovery in the global airline industry

04/28/2020 - 03:13

Boeing Co. CEO David Calhoun expects a slow recovery in the global airline industry.

Hugh Llewelyn via flickr
Hugh Llewelyn via flickr
On Monday, Head of the American aircraft manufacturing concern outlined the sad prospects for world aviation, speaking at the annual meeting of shareholders. It does not imply a return of air travel volumes to the level of 2019 within two to three years, reports The Wall Street Journal.

“The crisis (due to the COVID-19 pandemic) is not like anything we have ever encountered,” Calhoun said. “It will be years before everything returns to the previous level.”

Head of Boeing told about the consequences of the coronavirus pandemic for the industry. In particular, the revenue of world airlines this year is likely to fall by $ 314 billion. More than 2.8 thousand aircraft are now idle in the United States. Demand for air travel fell by 95% compared to the last year.

“We are in an unpredictable and rapidly changing environment, and it is difficult to assess when the situation is stabilizing,” he said. “But when this happens, the market will become smaller and the needs of our customers will be different.”

On April 29, Boeing will publish financial statements for the I quarter. It is expected that the company, among other things, will disclose information on the scale of production cuts and/or planned layoffs.