Bombardier Lower Forecasts Reflect Global GDP, High Oil Prices

Bombardier Aerospace’s latest annual 20-year forecast of the market for single-aisle airliners and business jets generally sees these sectors “trending positively” as they continue to recover from the downturn in deliveries that began in 2009. Broadly speaking, the Canadian airframer’s forecasters see the commercial aircraft market (up to 145 seats) taking a hit from dips in global domestic product (GDP) around the world and inflated oil prices. At the same time, they expect business jet deliveries to hold steady before increasing again.

Getting specific, Bombardier’s forecast for the 20- to 149-seat commercial aircraft market, which includes both turboprops and jets, calls for 12,800 deliveries from 2012 to 2031 that will generate more than $630 billion in sales revenue. This is a decrease of 300 aircraft (2.3 percent) compared to the company’s 2011 forecast, caused primarily by a lower forecast (by IHS Global Insight) of global GDP and a sharp increase in forecast oil prices.