Honeywell trims 10-year forecast for business jet deliveries

Honeywell International Inc.
HON,
+0.52%
said Tuesday it now expects 7,300 new business jet deliveries, worth $235 billion, during the 2021 to 2030 period, which is down 4% from the 10-year forecast provided last year. The aerospace company said 80% of business jet operators surveyed indicated that purchase plans have not been affected by the COVID-19 pandemic, and short-term reductions in deliveries and expenditures aren’t expected to have a long-term impact on the industry. Honeywell said the usage of business jets is expected to rebound to 80% to 85% of 2019 levels in the fourth quarter of this year, and to fully rebound by the middle of 2021. “The information we gleaned from operators shows a less than 1% decline in five-year purchase plans, so despite the short-term effects of the pandemic, we don’t expect long-term changes to purchase plans or to the overall health of the business jet market,” said Heath Patrick, president at Honeywell Aerospace. Honeywell’s stock, which ticked up 0.3% in premarket trading, has slipped 4.7% year to date through Monday while the Dow Jones Industrial Average
DJIA,
+0.09%
has eased 1.4%.