Boeing faces order deferrals in U.S.

By John Bowker

LONDON (Reuters) - Plane maker Boeing (BA.N) has seen a string of order deferrals in the United States this year as the airline industry battles challenges such as high fuel costs, a senior executive said on Wednesday.

Randy Tinseth, Boeing Commercial Airplanes Vice President for Marketing, said the delays also featured one total cancellation, but the issue was limited to the U.S market -- which accounts for 10-11 percent of its sales.

"We have seen deferrals in the U.S. market as the airlines look to make significant capacity reductions, but we are pleased to have regional diversity .. We have not seen deferrals in other regions," he told reporters.

Boeing shares were up 0.5 percent at $66.45 at 5:08 p.m.

Airline fuel costs have soared this year alongside record oil prices above $140 a barrel, forcing several airlines to cut capacity and hike fuel charges protect margins.

But Tinseth said Boeing did not expect the tough climate to last -- predicting the value of the new plane market to grow in the long term.

Bowing said the group now valued the market for new commercial planes at $3.2 trillion (1.6 trillion pounds) to 2027. That is up from a $2.8 trillion 20-year forecast provided last year.

"The forecast takes into account the industry's near term challenges, including a slowing worldwide economy (and) surging fuel prices .. This year's forecast is rooted in today's realities, but also recognises the nature of a long term outlook," Tinseth said.