Boeing CEO ‘Expect’ demand for aircraft begins to recover in the second half of 2021

Dave Calhoun, president of Boeing.

Adam Jeffery | Cnbc

Boeing CEO Dave Calhoun said Wednesday that he “hopes” that demand for new aircraft ravaged by the coronovirus epidemic will begin in the second half of next year.

The cancellation of Boeing aircraft is disregarding new orders this year as airlines recover from the effects of the virus and the company’s key 737 MAX remains frozen. Boeing reported a loss of $ 2.4 billion for the second quarter of the year. It also plans to reduce output and has warned about the possibility of more job cuts.

“There is a customer who wants to call us every day and deal with a difficult environment,” Calhoun said in an interview to CNBC’s “Squeak on the Street”.

Boeing said it plans to delay until 2022, extending a ramp-up of 737 production by a month to 31, with forecasts to do so later next year. The company said it would cut the output of its 787 wide body plane by six to six months. Currently it will produce only 777 planes out of five.

Calhoun said he expects uneven recovery from the epidemic for airlines around the world and carriers that are healthy want to gain more advantage over competitors with new aircraft, which could increase driving demand.

“China, Europe has slightly more control over its environment than the US,” Calhoun said. “It will happen and I believe that somewhere based on the success and delivery of a vaccine and vaccine, in the second half of next year I hope that this worm will change.”

Boeing shares fell more than 4% on Wednesday morning.


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