BOEING COMMERCIAL AIRPLANES Marketing June 2003

MIDDLE EASTGDP is expected to grow by 4.0% and traffic at 5.6% annually overthe next 20 years for the Middle East. This growth is helped by forecastsfor strong population growth and assumes oil prices remain at long-termsustainable levels.The Middle East attracts and supplies religious, leisure, cultural,and business travelers flying worldwide. Over one million air travelersparticipate in Haj each year. Dubai and Cairo are major economiccenters for the Middle Eastand Africa, and Dubai attracts Middle East Deliveries2003–20223%international shoppers andSmaller regional jetsSingle-aisle5%MICE (meetings, incentives,Twin-aisle747 andconventions, and exhibitions)largertravelers.36%The overall fleet of Middle56%East airlines is forecast to bealmost evenly divided betweensingle-aisle and twin-aisle airplanesin 2022. Short-haul flights$81 billion*786 airplaneswithin the region and to Europe* In year 2002 dollarswill support smaller airplanes.Currently some Middle East traffic is connecting flights betweenEurope and Asia, which will decline as longer-haul direct flights increase.However, long-haul flights to Asia and North America from developinghubs in the Middle East will support sizeable numbers of intermediateand 747-size and larger airplanes.CMO 2003_4-5Middle East FleetPercentage of fleet10075502502002470airplanes20221,123airplanesMiddle East ASK MixDomiciled AirlinesScheduled Nonstops, 2000Middle East to:Europe . . . . . . . . . . . . . . . 29%Middle East . . . . . . . . . . . 24%Southwest Asia . . . . . . . . 15%Southeast Asia . . . . . . . . 12%North America . . . . . . . . . 10%Africa . . . . . . . . . . . . . . . . . 6%Other Asia . . . . . . . . . . . . . 4%Regional Summaries 21 Current Market Outlook 2003