Boeing Raises Forecast for New Airplane Demand

Boeing had another good day at the Paris Air Show on Tuesday, with the 737 MAX racking up a number of new and converted orders.

The MAX series of jets are created to be a more fuel-efficient version of the workhorse 737, Boeing's most popular commercial plane. The MAX 10 is expected to cost slightly more than the MAX 9, which runs at around $119 million, AP reports.

Chicago-based Boeing wrote memoranda of understanding (MOUs) for 31 more single-aisle MAX family jets, with China's Okay Airlines taking eight 737-10s and seven MAX 8s. Boeing could be trying to convert those options to the 737-10. Changes to the cabin will allow airlines to add another 80 seats to the aircraft that carry about 500 passengers on average without reducing comfort.

Boeing's Current Market Outlook is the longest running jet forecast and regarded as the most comprehensive analysis of the aviation industry. The 737 MAX 10 will plug a gap in Boeing's portfolio at the top end of the market for single-aisle jets.

He also said that the new innovations give customers an "additional capacity with a 5 percent seat cost and trip cost advantage" over the Airbus A321neo, Boeing's competition.

Four-engined, double-decker superjumbos such as the A380 and Boeing's 747 were once viewed as the future of air travel between global hubs, but interest has waned as airlines have preferred cheaper, more nimble aircraft. The Max 10 "looks great and we've got a lot of customers interested".

The Max 10 is the fifth member of Boeing's family of single-aisle aircraft and the third model launched in as many years.

Shares of Boeing climbed higher following today's news, eventually hitting a new 52-week high of $199.47 in Monday morning trading.

This announcement comes at the same time that Boeing Chairman and CEO Dennis Muilenburg stated his belief that hypersonic jets could be used for commercial flights in the near future.

Boeing also recently added a larger Max 9 to its 737 lineup, which completed its maiden flight in April.

The manufacturer hopes airlines will begin flying the new model around 2025.

The wings and fuselage will be built primarily from carbon fiber composite material like the larger 787 Dreamliner, said Mike Delaney, Boeing's vice president of airplane development. The Max 10 is about 5.5 feet longer than the Max 9, which itself is about nine feet longer than the Max 8.

  • Leroy Wright