Airlines

It’s In The Air

plane-wing-small-March9

The International Air Transport Association (IATA) expects 7.2 billion passengers to travel in 2035, a near doubling of the 3.8 billion air travellers in 2016.

The prediction is based on a 3.7% annual Compound Average Growth Rate (CAGR) noted in the release of the latest update to the association’s 20-Year Air Passenger Forecast.

“People want to fly. Demand for air travel over the next two decades is set to double. Enabling people and nations to trade, explore, and share the benefits of innovation and economic prosperity makes our world a better place,” said IATA director general Alexandre de Juniac.

The forecast for passenger growth confirms that the biggest driver of demand will be the Asia-Pacific region.

It is expected to be the source of more than half the new passengers over the next 20 years. China will displace the US as the world’s largest aviation market (defined by traffic to, from and within the country) around 2029.

India will displace the UK for third place in 2026, while Indonesia enters the top 10 at the expense of Italy. Growth will also increasingly be driven within developing markets.

Over the past decade the developing world’s share of total passenger traffic has risen from 24% to nearly 40%, and this trend is set to continue.