IATA sees air travelers doubling to 8.2 B in 2037
The number of people traveling by air could double to 8.2 billion in 2037, given present trends in flying, according to the International Air Transport Association (IATA)’s revised 20-Year Air Passenger Forecast.
Furthermore, an increasing shift Eastwards in the center of gravity of the industry fuels continued strong growth.
Over the next two decades, the forecast anticipates a 3.5% compound annual growth rate (CAGR), leading to a doubling in passenger numbers from today’s levels.
However, the Association warned that growth prospects for air transport and the economic benefits driven by aviation, could be curtailed if governments impose protectionist measures.
“Aviation is growing, and that is generating huge benefits for the world. A doubling of air passengers in the next 20 years could support 100 million jobs globally,” Alexandre de Juniac, IATA’s Director General and CEO, underscored.
A couple of things stand out about this year’s forecast, he pointed out.
“Firstly, we are seeing a geographical reshuffling of world air traffic to the East. Secondly, we foresee a significant negative impact on the growth and benefits of aviation if tough and restrictive protectionist measures are implemented.”
Significantly, the Eastward shift in aviation’s center of gravity continues.
The Asia-Pacific region will drive the biggest growth with more than half the total number of new passengers over the next 20 years coming from these markets.
Growth in this market is being driven by a combination of continued robust economic growth, improvements in household incomes and favorable population and demographic profiles.
China will displace the United States as the world’s largest aviation market (defined as traffic to, from and within the country) in the mid-2020s.
The rebalancing of China’s economy towards consumption will support strong passenger demand over the long term.
India will take 3rd place after the US, surpassing the UK around 2024.
Indonesia is forecast to be a standout performer—climbing from the world’s 10th largest aviation market in 2017 to the 4th largest by 2030.
Thailand is expected to enter the top 10 markets in 2030, replacing Italy which drops out of the ranking.
IATA projects China will haul in 1 billion new passengers for a total of 1.6 billion; the US, 481 million new passengers for a total of 1.3 billion; India, 414 million new passengers for a total of 572 million; Indonesia, 282 million new passengers for a total of 411 million and Thailand, 116 million new passengers for a total of 214 million.
Routes to, from and within Asia-Pacific will see an extra 2.35 billion annual passengers by 2037, for a total market size of 3.9 billion passengers.
Its CAGR of 4.8% is the highest, followed by Africa and the Middle East.
The Middle East will grow strongly with a CAGR of 4.4% and will see an extra 290 million passengers on routes to, from and within the region by 2037. The total market size will be 501 million passengers.
The North American region will grow by a CAGR of 2.4% annually and in 2037 will carry a total of 1.4 billion passengers, an additional 527 million passengers.
Latin American markets will grow by a CAGR of 3.6%, serving a total of 731 million passengers, an additional 371 million passengers annually versus today.
Europe will grow at a CAGR of 2.0%, and will see an additional 611 million passengers. The total market will be 1.9 billion passengers.
Africa will grow by a CAGR of 4.6%. By 2037 it will see an extra 199 million passengers for a total market of 334 million passengers.
The 3.5% CAGR to 2037 assumes an unchanged policy framework over that period. Policy shifts, however, are likely over time.
Should protectionism continue to expand in a “reverse globalization” scenario, aviation would continue to grow, but at a slower pace and deliver fewer economic and social benefits.
Under a liberalized environment connectivity would generate significantly more jobs and GDP growth.
“Global prosperity depends on air connectivity. Aviation is sensitive to policies that either support or undermine growth. And these seem to be pointing in the wrong direction,” he noted.
“Dampening demand for air connectivity risks high quality jobs, and economic activity dependent on global mobility. This forecast is a cautionary warning to governments.”
“The industry will grow but they must clear the infrastructure bottlenecks to bring that growth to their home markets. Governments must understand that inhibiting globalization with protectionism will see opportunities lost,” de Juniac elaborated.