Airbus raises estimate of 20-year demand for new planes
European plane maker anticipates demand for new aircraft over the coming decades at 39,210 planes
Airbus has increased its estimate of the number of new aircraft needed over the next 20 years as airlines seek more fuelefficient planes, even as it trimmed its forecast for increased demand for air travel.
In its latest Global Market Forecast for the next 20 years, the European aircraft maker said it expects air traffic to grow by 4.3 percent annually, a drop from the 4.4 percent annual growth it forecast last year.
Nevertheless, Airbus now expects even higher demand for new aircraft than it did last year, thanks to airlines increasingly retiring older planes for new ones that offer lower operating costs as they consume less fuel.
Airbus anticipates demand for new aircraft over the coming two decades at 39,210 planes, a rise of nearly 2,000 from its forecast last year, due a sharp increase in replacements. Unlike last year, it did not provide a cost estimate.
“Developments in superior fuel efficiency are further driving demand to replace existing less fuel efficient aircraft,” said Airbus in a statement.
However, it scaled back the number of planes it expects airlines to acquire to meet growth in demand for air travel by more than 1,500 aircraft to 25,000.
Airbus said that nevertheless the annual growth of more than 4 percent reflects the resilient nature of aviation from economic shocks and its increasingly key role in the global economy. Economies thrive on air transportation. People and goods want to connect,” said Christian Scherer, Airbus chief commercial officer and head of Airbus International.
“Globally, commercial aviation stimulates GDP growth and supports 65 million livelihoods, demonstrating the immense benefits our business brings to all societies and global trade,” he added.
Airbus expects air traffic to grow by 4.3 percent annually