Following the revised BMO that already had its impact on Boeing shares, airline stocks fell after President Donald Trump called for a halt in the stimulus negotiations.

Leading aircraft manufacturer the Boeing Co (NYSE: BA) has revised its previous bullish Boeing Market Outlook (BMO) due to the effects of the COVID-19 pandemic. According to the Boeing Co’s (BA) new BMO, the impact of the COVID-19 pandemic has changed the company’s view of near-, medium- and long-term market dynamics, projecting that the airline industry will continue to bear the impact of the coronavirus pandemic for the next ten years.

Per the revised BMO from BA, the company forecasts a total market value of $8.5 trillion (down from $8.7 trillion in its previous BMO) over the next decade including demand for aerospace products and services. The BMO also forecasts the demand for commercial airlines to drop by about 11% to 18,350 commercial plans from its 2019 projections.

In addition to the released BMO, the Boeing (BA) also released the 2020 Commercial Market Outlook (CMO), a forecast of the market outlook for the next 20 years. In the CMO, Boeing expects that in the next 20 years, passenger traffic growth will increase by an average of 4% per year, with the global commercial fleet expected to reach 48,400 by 2039, up from 25,900 airplanes today.

Despite the strain on the global airline industry, the firm believes the industry is resilient to bounce back to its winning ways in about a decade or two from now.

“Commercial aviation is facing historic challenges this year, significantly affecting near- and medium-term demand for airplanes and services,” said Darren Hulst, vice president, Commercial Marketing. “Yet history has also proven air travel to be resilient time and again. The current disruption will inform airline fleet strategies long into the future, as airlines focus on building versatile fleets, networks, and business model innovations that deliver the most capability and greatest efficiency at the lowest risk for sustainable growth.”

Meanwhile, the revised BMO caused the shares of Boeing to close at $159.54 on Tuesday with a 6.81% drop in the stock price. The loss is currently being corrected in the pre-market as the stock has gained 2.18% at the time of writing.

Following the BMO Revision by Boeing, Trump Calls for Aid for the Airline Sector

Following the revised BMO that already had its impact on BA’s shares, general airline stocks fell after President Donald Trump called for a halt in the stimulus negotiations until after the November 3 Presidential elections.

However, the president has reviewed his stance, but for the airline industry in which he said late Tuesday:

“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support.”

Should the aid come as expected, airline operators may be able to save their workers from been laid-off.

“Time already ran out for U.S. airlines and many of our employees, yet there is a glimmer of hope that our leaders in Washington will act and save these jobs before it’s too late to turn back the clock,” Airlines for America, a lobbying group that represents major U.S. airlines, said in a statement.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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