Boeing CEO Dave Calhoun has said the U.S. aerospace company and airplane manufacturer does not expect 2019’s level of flying to return for at least two to three years.
In a Monday morning statement to shareholders about air travel’s future beyond the coronavirus pandemic, Calhoun said it would most likely take several more years after 2021-2022 before long-term growth trends recover to 2019 rates.
However, he said that the multinational company expects to deliver its first 777X jet in 2021 and that the aerospace industry will recover slowly at first, then later with “vigor.”
Boeing’s sober estimate of the future of air travel comes just one day after its French counterpart, Airbus, said it is “bleeding cash at an unprecedented speed.”
The U.S. aerospace company’s stock bounced up Monday morning, despite its pulling out of a long-planned, $4.2 billion joint venture with Brazil’s Embraer corporation. The two-year-old deal was canceled Saturday.
Embraer blamed Boeing’s 737 Max problems as well as the pandemic’s effects on the airline industry worldwide. Embraer also said Boeing scrapped the deal on technicalities, in part because of its financial problems and the need to ask Congress for bailout money.
“You can’t easily go to Congress and ask for support and spend the money on an acquisition,” a senior industry source is quoted to have told Reuters Monday.
Africa Tembelea has learnt that Boeing is set to release its earnings on Wednesday.