Commercial Market Outlook

Darren Hulst
Vice President, Commercial Marketing Proprietary: The information contained herein is proprietary to The Boeing
Company and shall not be reproduced or disclosed in whole or in part except
when such user possesses direct written authorization from The Boeing Company.
July 16, 2024 The statements contained herein are based on good faith assumptions are to be
The statementsused for general
contained information
herein are purposes
based on good only. These
faith assumptions arestatements dogeneral
to be used for not constitute
information
purposes only.an offer,
These promise,do
statements warranty or guarantee
not constitute of performance.
an offer, promise, warranty or guarantee of performance.

Copyright © 2024 Boeing. All rights reserved.

Copyright | BOEING
© 2024 Boeing. All rights PROPRIETARY
reserved. | CSM || DAH
CSM-PM&A
| CMOROLL| | 16JUL24
16JUL24
Believe it or not, traffic is where it was projected
12

10

8
RPKs (trillions)

0
1997

2016
1990
1991
1992
1993
1994
1995
1996

1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

2017
2018
2019
2020
2021
2022
2023
2024
2025
RPKs = Revenue Passenger Kilometers
SOURCES: S&P Global Market Intelligence, Boeing Analysis
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Macro-fundamentals remain supportive

GDP growing Inflation Interest rates

steadily decelerating falling
6% 6%
3% 3% 3% 5% 5%
3% 4%

2023 2024 2025 2023 2024 2025 2023 2024 2025

SOURCES: S&P Global Market Intelligence, Boeing analysis

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Travel remains a top priority

84% will 66% will travel Trip lengths will be 1 day

prioritize more longer
travel in their budget than pre-pandemic than before 2020
SOURCES: McKinsey, eDreams ODIGEO, Mastercard Economics Institute
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Aviation is an enabler in an increasingly connected world
2003 Current
40 million 1.9 billion 1.4 billion 8.9 billion $215 billion ~$850 billion
Websites Smartphones Global remittances

Booking & research Convenience Family visits

Experiences Social media Economic growth
Connections Connections Connections

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
 Multi-speed passenger
Economic / traffic growth
income
levels

Maturing
Connectivity, Infrastructure US domestic
breadth of and modal
network competition Transatlantic

Intra-Europe

Intra-SE Asia
Airline Innovation
competition, and service Domestic India
affordability levels
SE Asia - India
Geography
Emerging

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Global network has doubled since 2004, remains dynamic
Total industry routes

2024
2004
net added
All routes airport 2.1X
airport
pairs
pairs

Single-aisle 2.3X

Widebody 1.3X

- 6,000 12,000 18,000 24,000

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
90% of routes have competition
Routes served by two or more airlines

90%

73%

37%

Route share Seat share Revenue

share
SOURCES: Schedules via Cirium Diio, DDS (IATA), Boeing Analysis
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
 Air travel remains
affordable
Passenger yields vs. global consumer
prices (2004 = 100)

250
Traffic
200

CPI
150

100

Yield
50

2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
SOURCES: IATA, S&P Global
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Fleet efficiency continues to improve

Commercial aviation fuel efficiency trends

0.14
New technology

Fuel consumption (Gallons / Revenue Tonne Kilometer)

Since 2004 (-2%)
0.12

Load factors 0.10

Historical
Densification 0.08

0.06
Productivity
Pre-pandemic trend (-2.6%)
0.04

Network
0.02

Regulations -

2004

2008

2012

2016

2020

2024

2028

2032

2036

2040

2044

2048
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Differentiation increasing: premium economy seat share up 10% on
major long-haul flows

Transatlantic Europe-Asia Transpacific

32% 30%
22% 24%
20%
15%

2019 2023 2019 2023 2019 2023

SOURCES: 2023 Cirium Diio FMTraffic, Cirium Diio, Cirium Fleets Analyzer, Boeing analysis
Premium economy seat share, premium cabins only
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Airlines managing profitability in volatile market

Operating profit:
60 +$17 billion
57
52 54 Net profit:
+$4 billion
Profit per passenger:
+6%

Unit costs Unit revenues

(cents per ATK*) (cents per ATK)

2019 2024
*ATK: Available Tonne Kilometers
SOURCE: IATA Industry Outlook, June 2024 Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Global air cargo traffic continuing strong recovery
24
+13%
23
2024 Year to date vs. 2023

22
Trade growth recovering
Global CTKs, Billions

21

2019 Semiconductor demand rising

20

19
2023 Inventories normalizing

18 E-commerce growth

17
Maritime shipping disruptions
16
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

SOURCE: IATA Monthly Statistics, May 2024

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Key drivers supporting air cargo momentum

Trade, manufacturing up Supply chain resilience E-commerce boosting growth

Global semiconductor trade ($ billion)* 100% 99.6% Global e-commerce sales ($ trillion)
1600 777F reliability $8

+62%
80% +112%
1200 $6
Reliability

60% Container
shipping 52.1%
800 $4
40% reliability
400 20% $2

0 0% $0
2018 2024 2018 2024 2018 2024
SOURCES: S&P GTAS Forecasting, www.sea-intelligence.com, Boeing ACTD; IATA; eMarketer; Digital Commerce 360; Boeing analysis
*Note: semi-conductor trade is real value of trade in electronic valves, tubes, semiconductors and other electronic components.
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
E-commerce boosting air cargo demand

Emerging platforms
shipping
10,000+
tonnes per day

Equivalent to
100 777Fs
daily

SOURCES: IATA Monthly Statistics; CAAC; Boeing analysis. Cargo Facts.

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Global fleet is progressing along road to recovery

Current End of decade

Constrained Capacity Increasing

Delayed Retirements Normalizing

Extended Leases Transitioning

Aging Fleets Renewing

Returning Productivity Growing

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Airplane supply temporarily constraining retirements

Annual removal rate from passenger fleet

3.5%

3.0%

2.5%
Half of
normal
2.0% rate

1.5%

1.0%

0.5%

0.0%
1980-1989 1990-1999 2000-2009 2010-2019 2020-2023
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
So average fleet age is rising

Single-aisle passenger Widebody passenger Widebody freighter

11.3 11.2 17.9

17
10
9.5

2019 2024 2019 2024 2019 2024

SOURCE: Cirium, June data
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Fleet productivity rising, dynamics similar but different

Single-aisle annual growth (2003-2023) Widebody annual growth (2003-2023)

Fleet 3.1% Fleet 2.1%

Densification
Seats 4.8% Up-gauging Seats 1.7% More capable
twins, versatility
Longer stage
Longer stage
ASKs 5.7% lengths ASKs 3.1% lengths
More flights/day
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Remarkably accurate forecast
Industry deliveries Delivery share by segment
25,000

24% 21%

20,000
Widebody

2004 CMO
15,000 2004-2023
20-year
Deliveries
Delivery
Forecast 59%
70%
10,000

5,000 Single-aisle

17%
Regional jet
9%
0
CMO 2004 2004-23 deliveries
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Going forward, productivity gains likely to slow

Passenger Load Factor Airplane Utilization (hours / day) Average Seats / Airplane
100% 12 200

175
80% 10
150
8
60% 125

6 100
40% 75
4
50
20%
2
25

0% 0 0
2003 2023 2043 2003 2023 2043 2003 2023 2043

SOURCES: ICAO, IATA, Boeing

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Steady long-term forecast driven by fundamentals

World economy Passenger traffic Cargo traffic Fleet growth

(GDP) (RPK) (RTK) (Jets)

2.6% 4.7%
3.6% vs. 2019
4.1% 3.2%
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Airlines will need 43,975 new airplanes over 20 years

33,380
By type

1,525 8,065 1,005

Regional jet Single-aisle Widebody Freighter
4% 76% 18% 2%

Latin America Africa

3%
Middle East 5% Eurasia
7% 22%

By region
China
20%
22%
Asia Pacific
North America 21%

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
World air cargo market to demand more than 2,800 freighters by 2043

810 Standard-body
<40 tonnes
2,845
New and 1,250 Medium widebody
conversions 40-80 tonnes

Large widebody
>80 tonnes
785

4,000
3,900

3,000
2,340
2,000

1,000

Fleet
0
2023 2043
Freighters Freighters
SOURCE: Boeing Commercial Market Outlook July 2024, Forecast period 2024-2043
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Global fleet will double, nearly half of deliveries for replacement
50,000

40,000 23,420
(53%)

30,000

50,170
20,000
20,555
(47%)
26,750
10,000

6,195
0
2023 In-Service Fleet Retained Fleet Replacement Growth 2043 Fleet

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Decarbonizing aerospace

FLEET OPERATIONAL RENEWABLE ADVANCED MARKET-BASED

RENEWAL EFFICIENCY ENERGY TECHNOLOGY MEASURES

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Commercial services are critical to the aviation eco-system

Today Digital Solutions & Analytics In 20 years

43M Freighter Conversions 85M

People Engineering & Modifications People
Engine Maintenance
310M Component Maintenance
565M
Maintenance hours Maintenance hours
Airframe Maintenance
100K Parts & Distribution Services 215K
Heavy and line events Training Services Heavy and line events
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
 Growth and replacement drive services and labor needs

$4.4T in Services 2,370,000 New Personnel

Training & Pilot Services
4% Africa & Middle East
13%
Americas
Digital Solutions 24%
& Analytics Parts &
28% Distribution
Services
38%

China
18%

Eurasia
24%
Asia Pacific
Maintenance, Repair, Overhaul & Modifications 21%
30%
SOURCE: Boeing; forecast period 2024-2043
Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Summary

Market is resilient Industry is recovering Long-term growth

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24
Designed for efficiency
& sustainability
Offering the most
capability & productivity

Delivering versatility
for a dynamic market

Copyright © 2024 Boeing. All rights reserved. | CSM | DAH | CMOROLL | 16JUL24