Analyst: Boeing production to continue at ‘healthy pace’
Boeing is on a healthy pace for 787 deliveries, with August deliveries near a record, Sterne Agee aviation analyst Peter Arment said Tuesday in a note to investors.
In addition, Boeing’s overall August deliveries were in line with analyst estimates.
Boeing delivered about 58 airplanes in August, which is in line with Arment’s delivery assumptions for the third quarter of 2014, he wrote.
Deliveries of 787 Dreamliners totaled about 14, he said, one delivery less than Boeing’s record, which was set in June, Arment said.
Boeing delivered 70 787s in the first eight months of 2014, he said.
“787 deliveries are expected to remain at a healthy pace on a monthly basis going forward with the production system up and stabilized until the next rate increase in 2016,” Arment wrote.
Boeing has not officially released its August delivery numbers.
Spirit AeroSystems in Wichita builds portions of all Boeing airliners.
Arment expects September Boeing deliveries overall to top 64 airplanes, in line with Sterne Agee’s current third quarter estimates.
He expects Boeing to deliver 725 planes in 2014, with 111 787 deliveries.
Boeing’s 2014 delivery guidance is from 715 to 725 aircraft.
Through Aug. 26, Boeing has secured 918 net orders for commercial airplanes this year, with 640 tied to the 737.
The global fleet of small to large airliners totals about 5,000 aircraft.
The market is expected to grow by about 1,000 planes by 2012, Arment wrote.
Boeing sees this market expanding on a net basis of 3 percent to 4 percent a year, which implies that about 250 wide-body planes will be scrapped or retired each year, he said.
About 1,000 planes will be retired annually by 2023, more than double the 410 aircraft average during 2000 to 2009.
“This increase in retirements reflects the backside of the massive order cycle during the past several years,” Arment wrote.
Reach Molly McMillin at 316-269-6708 or mmcmillin@wichitaeagle.com. Follow her on Twitter: @mmcmillin.
This story was originally published September 2, 2014 at 10:44 AM with the headline "Analyst: Boeing production to continue at ‘healthy pace’."