While Boeing is sitting on 5,900 aircraft orders, it is forced to increase production as that order number and its stock continue higher. The current order book equates to about seven years of orders that, despite the slowdown in China, indicates that this firm has products that people need. The China slowdown aside, the International Air Transport Association has produced research that forecasts an addition 1 billion passengers over the next 20 years – so China growth is still a long-term factor.
At the beginning of 2019, Boeing shares rallied to an all-time high only a couple of days after the company reported strong fourth-quarter results and a backlog of 5,900 new aircraft orders. Production last year stood at 806 planes produced while the next year target of 895 will break all Boeing records. The current production rates means Boeing can roll a new plane off an assembly line every 9 hours and 45 minutes in 2019. One analyst reported that “it appears things are just heating up.” (this article was sourced from CNBC – Feb 4, 2019 – by Sheetz and Olsen).
Boeing shares are up 21 percent since the start of 2019 – after it rallied aggressively in the final months of 2018. This comes at a time when the US manufacturer is building smaller planes that fly from one point to a final destination while the Airbus product of the A380 remains focused on the hub system. More on this topic on the coming weeks and months.