Boeing insists there is sufficient growth and demand to support its production output.
"People always ask whether we are producing too many aircraft, but capacity grows slower than the rate of traffic," said Randy Tinseth, vice-president of market at Boeing, at the ISTAT conference in Tokyo. "We are continuing to see demand. This is not a production bubble."
Airbus and Boeing each expects demand for around 20,000 narrowbody aircraft over the next 20 years.
"We are not overproducing aircraft. In 2012, airlines retired 600 aircraft," says Tinseth.
The world fleet has been growing "but at a slower rate" due to a number of factors including the European debt crisis and slower growth in US economy, he says, adding that passenger growth "has been very resilient growing at 5.2% on 4% capacity", with growth greatest in the Asia-Pacific region.
The soft cargo market will be a "bit better" this year than in 2012, predicts Tinseth.