Boeing sees lower outlook for commercial aircraft orders

Washington DC
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Boeing expects the pace of new orders for commercial aircraft will cool off significantly in 2014 after a record-breaking three-year run.

Boeing chief executive James McNerney told reporters on a 29 January earnings teleconference call that he expects a 1:1 book-to-bill ratio in 2014.

Boeing also said on 29 January that it anticipates delivering between 715 and 725 commercial aircraft in 2014.

Although the delivery forecast is up by 11% compared to last year, the outlook for gross orders is sharply lower.

Boeing collected 1,355 net orders in 2014.

The disclosure sets the stage for another close orders battle with Airbus this year.

Earlier this month, Airbus issued a modest forecast anticipating deliveries will remain on par in 2014 compared to last year, when the company shipped 626 aircraft to customers.

Airbus also said that it expects to book more orders than deliveries during the year.

Although the order forecasts reveal a cooling period, McNerney dismissed concerns about reduced demand in China or other hot markets.

“I don’t think the China story has changed personally,” he says.