Boeing does not expect to take a hit from the US-China trade tensions in the year 2019. In fact, they expect to continue thriving as the year goes on. Boeing reported strong returns on Wednesday this week in its fourth quarter. This happened as the global air travel continued to grow last year, pushing its profits up by 3.1% from a similar period a year ago. This percentage is equivalent to $ 3.4 billion in profit.
Their single-aisle Boeing 737 aircraft was instrumental in the good performance of the aerospace giant. Sales of this particular aeroplane model, raked in more than half of its commercial deliveries last year. In one of the conferences held in October 2018, Boeing top executives said that the company’s production of 737 had increased to 52 planes. Before this, they were making 47 planes. In 2019 they plan to take it a notch higher by producing an extra 5 planes, making a total of 57 every month.
Dennis A. Muilenburg, the chief executive officer, said that the company recognizes the potential of China as one of the fastest growing markets in commercial aviation all over the world. He further said that there were strong reasons not only for China, but also the U.S to have a prosperous aerospace industry.
In December last year, the aerospace giant launched a delivery centre in Zhoushan, China. This is where the Boeing 737 planes from Seattle will undergo the final touches on their interiors. According to the company’s statistics, China is expected to take up to 18 % of the new planes being built over the next 20 years.
Some well-established companies in China such as caterpillar and Apple have reported a slowdown in terms of demand surrounding their Chinese market. However, other companies like Nike and General Motors described the demand as still solid amidst the US-China trade struggles.