Boeing CEO says travel demand recovery is 'more resilient' than he imagined

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A Boeing 777x is displayed during the International Paris Air Show at the ParisLe Bourget Airport, on June 20, 2023.

Geoffroy Van Der Hasselt | AFP | Getty Images

Boeing CEO Dave Calhoun is optimistic about the recovery of travel demand, which he said is stronger than he expected.

“Yes, it is resilient. Calhoun said on CNBC’s Squawk Box Asia that the recovery of travel demand is stronger than he expected. Calhoun told CNBC’s “Squawk Box Asia” that the aviation industry is not experiencing recession fears. He said, “Order books and proposals are as robust as

has ever been in my career.” Dave Calhoun[he’s]CEO Boeing

“If anything, this is the question we are all grappling with: How do we regain resilience in our supply chains that they had prior to Covid, so that we can meet the demands,” said Mr. Calhoun. Both Boeing and rival

Airbus

said supply chain constraints are curtailing their abilities to ramp up production. In May, the World Travel & Tourism Council predicted that the travel and tourism industry would not recover fully this year. And while China’s domestic airline capacity has fully recovered, international flight capacity is still less than half of pre-pandemic levels, a Skift Research report showed.

Still, Calhoun said, “I’m actually bullish with respect to my company, and China. “

They need more lift, just like everyone else around the globe,” Calhoun said. He added that he hoped the geopolitical worries surrounding China would “begin dissipating a bit.” Calhoun stated that it would take “a pretty long time” for the C919 jet, produced by Comac in China, to become a global competitor for Boeing and Airbus. Even if this were the case, given the travel demand, it wouldn’t be the “worst” thing. By 2050, it is not the worst for aviation to have three competitors. I actually think it’s a positive thing. “