US-based aircraft and defence company Boeing has revealed a 78 per cent rise in quarterly earnings as the company continues to benefit from stronger demand for its military equipment and weapons systems.
Boeing’s total net income in the third quarter ending 30 September reached $456 million (£248 million) up from $256 million twelve months earlier and well ahead of market forecasts. Despite a decline in commercial airplane revenue sales increased by eight per cent to $13.15 billion.
The company also increased its commercial plane delivery forecast for 2005 and the current 200 orders for its newest plane, the 7E7, will proceed despite increased oil prices.
However, Boeing did warn that although the market was improving, a number of uncertainties remain. A statement from the company said: “The airline industry environment remains mixed with trends varying between carriers and region. A number of low-cost carriers continue to gain market share, remain profitable and order new airplanes.
“The global economy and air traffic trends are recovering and interest from airlines in adding capacity to handle higher traffic volume is increasing. However, higher fuel prices have dampened airline profits, particularly in the US.”