Boeing Commercial Airplanes

July 2014
The statements contained herein are based on good faith assumptions and are to be used for general information purposes only. These statements do not constitute an offer, promise, warranty or
guarantee of performance.
July 2014
Copyright © 2014 Boeing. All rights reserved.
 Twenty-year traffic and
product forecast

All regions of the world

• 169 airlines / groups
• 63 traffic flows

All jets 30 seats and above

• No turbo props
• No business jets

Freighters
Scheduled and
nonscheduled flying

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 Product Long-range Suppliers and
strategy business plan airline customers

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 Fleet consists of all jet aircraft with at least 90 seats

10,000 Medium-term
Accurate Actual
8,000 2004 CMO
6,000 Forecast

Conservative 4,000

2,000

0
Under-forecasted 2004-2013
single-aisles
20,000 Long-term

16,000
Actual
Over-forecasted large
12,000 1994 CMO
and regional jets
Forecast
8,000

4,000

0
1994-2013
SOURCES: CMO 1994, CMO 2004, ASCEND
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 Agenda

What’s trending in aviation?

20-year traffic and airplane forecast
Product strategy & development
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What’s trending in aviation?

Strong, resilient, Passengers flying Single-aisle is fastest

growing market where they want growing, most
expected to continue when they want dynamic segment

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 4,000 new markets Low cost carrier will Versatility drives
continue fast growth growth

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 Single-aisle backlog and forecast
>75% of recent deliveries
and orders in medium-size Large S-A

space

• Versatile and flexible for

expansion and frequency
79%
• Efficient across market 76% 70-75%
spectrum with lower risk

Market focus will remain in

Small S-A
this size space (737 MAX 8)
2010-2013 Order backlog Future
deliveries since 2010 demand

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Average number of seats last 15 years

Flexibility
More markets
More frequency
Passenger
preference 170

737 MAX 8
160
2,000-3,000 nmi

150
seats

Efficiency
Unit cost
Fuel per seat
LCC growth

2000 2002 2004 2006 2008 2010 2012 2014

SOURCE: Ascend, single-aisle airplanes excluding regional jets and prop aircraft, all stage lengths
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 20-year traffic and airplane forecast
Copyright © 2014 Boeing. All rights reserved.
 reca

Market Airplane High

liberalization capabilities Environment speed
rail

Airline
Fuel Emerging strategies &
price markets business
models

Economic
Infrastructure growth

Current
Market
Outlook
2014-2033

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Resilient, growing market expected to continue
RPKs (trillions)

6.0
4 recessions
2 financial crises
5.0
2 Gulf wars
1 oil shock
4.0
1 near pandemic (SARS)
9/11
3.0

2.0

1.0

0.0
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
RPKs = Revenue Passenger Kilometers
SOURCE: ICAO scheduled traffic
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Macroeconomics
Trade
GDP level
GDP per capita
Labor force

Value of service
Network structure
Infrastructure
Business model
Type of service
Regulatory environment
Demand

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 2013 to 2033

World
economy 3.2%
(GDP)

Number
of airline 4.2%
passengers

Airline
traffic 5.0%
(RPK)

Cargo
traffic 4.7%
(RTK)

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World

2.5
Air Travel
Growth
Frequency
Growth
2.0 Nonstop
Markets

1.5

Average
1.0 Airplane
Size

0.5

SOURCE: August OAG

Index 1993=1.00
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787 Dreamliner opening new markets around
the world
As of June 30, 2014

Current new nonstop routes flown with the 787:

Delhi-Birmingham (AI) Houston-Lagos (UA) Tokyo-San Jose (NH) Stockholm-Fort Lauderdale (DY)
Delhi-Melbourne (AI) Tokyo-San Diego (JL) Addis Ababa-Dulles (ET) Stockholm-Bangkok (DY)
Delhi-Sydney (AI) Tokyo-Boston (JL) Oslo-Bangkok (DY) Oslo-New York (DY)
Denver-Tokyo (UA) Tokyo-Helsinki (JL) Stockholm-New York (DY) Oslo-Fort Lauderdale (DY)
London-Austin (BA)

Stockholm
Oslo Helsinki

Copenhagen
Birmingham
San Francisco London
Denver Boston
San Jose New York
Oakland Austin Washington
Delhi Tokyo
Los Angeles Chengdu
Orlando
San Diego Houston Fort Lauderdale
Bangkok Announced
Lagos Addis Ababa
In operation

787
Operators:
Sydney

Melbourne

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They’ve been telling it for 15 years and still… nothing

SOURCE: Airbus Annual Press Conference, 13 January 2014

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Top 25 long-haul airports

2000 2014

+58% +60%
+46%

-2%
304
299

Capacity Frequency Cities served Seats per flight

SOURCE: Industry schedules

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Airplane deliveries: 36,770 Market value: $5.2T
2014 - 2033 2014 - 2033
30,000 3,000
25,680 $2,560B
25,000 2,500
20,000 2,000
15,000 1,500
$1,140B $1,160B
10,000 1,000
5,000
4,520 3,460 500
2,490 $240B
620 $100B
0 0
Regional Single- Small Medium Large Regional Single- Small Medium Large
jets aisle wide-body wide-body wide-body jets aisle wide-body wide-body wide-body
7% 70% 12% 9% 2% 2% 49% 22% 22% 5%

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Units

45,000
42,180
40,000

35,000
21,270
30,000 Growth
58%
25,000
36,770
20,910
20,000

15,500
15,000
Replacement
10,000
42%

5,000
5,410
0
Retained fleet
2013 2033

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 Annual GDP growth, 2013 – 2033
South
Asia 6.5
China 6.2
Southeast
Asia 4.7
Africa 4.7
Asia
Pacific 4.4
Latin
America 3.9
Middle
East 3.8
CIS 3.3
World 3.2
Oceania 2.7
North
America 2.5
Europe 1.9
Northeast
Asia 1.5

SOURCE: IHS Economics

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 RPKs, billions
Added traffic Annual
2013 traffic 2014-2033 growth %
Within Asia Pacific* 6.3%
Within China 6.6%
Within North America 2.3%
Within Europe 3.5%
Middle East - Asia Pacific 7.4%
Europe - Asia Pacific 5.3%
North Atlantic 3.1%
World
Within Latin America 6.9% Average
Trans-Pacific 4.3% Growth:
5.0%
Within/to CIS 4.5%
North America - Latin America 4.7%
Europe - Latin America 4.9%
Africa - Europe 4.9%
0 500 1,000 1,500 2,000 2,500 3,000
*Does NOT include travel within China
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New airplane deliveries by region Market value by region
2014–2033 2014–2033
Region Airplanes Region $B
3% 3%
Asia Pacific 13,460 Asia Pacific 2,020
8% 3% 7% 3%
Europe 7,450 Europe 1,040
8% 37% 12%
North America 7,550 North America 870 39%
Middle East 2,950 36,770 Middle East 640 $5.2T
Latin America 2,950 21% Latin America 340 17%
C.I.S. 1,330 C.I.S. 150
20% 20%
Africa 1,080 Africa 140
World Total 36,770 World Total $5,200B
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 RTKs = Revenue Tonne Kilometers

250

200
RTKs (billions)

150

100

50

0
1980 1984 1988 1992 1996 2000 2004 2008 2012

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 Share of fleet Delivery units
100%

80% Large production 590

>80 tonnes
60% Wide-body conversions 960
40-120 tonnes
2,170
40% Medium wide-body production
40-80 tonnes 370
20% Standard-body conversions
<45 tonnes
250
0%
2013 2033 2014 to 2033
Freighters Freighters Freighters
1,690 2,730
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New freighter deliveries: 840 Market value: $240 billion
2014–2033 2014–2033
700 250
590
600
200 $190B

Market value
500
Airplane units

400 150

300 250 100

200 $50B
50
100
0 $0B
0 0
Large Medium Standard Large Medium Standard
>80 tonnes 40-80 tonnes <45 tonnes >80 tonnes 40-80 tonnes <45 tonnes
70% 30% 79% 21%
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 Product strategy & development
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More value to our customers in all markets
Efficiency designed-in from the start

Environmental performance Passenger experience

Long-range, fast, reliable Low operating cost

Operational commonality Standardization

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 374 374
350 747
Backlog ($B) 319 777 Large
2%
300 295
Single-
Aisle 737
256 Model
46%
250 Twin-
Aisle
52%
787
200
767
150
Leasing,
Gov't & North
BBJ America
100 ME,
Central
& L.
S. Asia Region America
& Africa
50
Europe Asia
& Pacific
Russia China,
East &
0 SE Asia

2010 2011 2012 2013 1Q14

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Superior value, efficient market coverage
Current Boeing Future Boeing
500 500

747-8 747-8
450 450

777-9X
400 400

777-300ER
777-8X
350 350

Seats
Seats

787-10
777-200ER
300 300
787-9 787-9

250 250
787-8 787-8
767-300ER

200 200
737 MAX 9
737-900ER
737-800 737 MAX 8
150 150

737-700 737 MAX 7

100 100

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Superior value, efficient market coverage
600 Airbus Future Boeing 600

A380
550 550

500 500

747-8
450 450

777-9X
400 400

Seats
Seats

777-8X
350 350
A350-1000
787-10
300 A350-900 300
787-9
A330-300
250 A350-800 250
A330-200 787-8

200 200
A321neo 737 MAX 9

A320neo 737 MAX 8

150 150
A319neo 737 MAX 7

100 100

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 Things to remember

Strong, growing market being driven by customers flying where they want,
when they want

Single-aisle -- fastest growing and most dynamic segment -- fueling forecast

With the most comprehensive widebody lineup in the industry, Boeing will be
able to meet customers’ needs now and in the future

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 For more information, please visit our CMO website:
http://www.boeing.com/cmo

You can also visit my blog, Randy’s Journal:

http://boeingblogs.com/randy/

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