Market Trends of commercial aviation Industry
Ease of travel restrictions and the rising number of passengers are driving the demand
- As cross-border travel was progressively restored, the carriers in the Asia-Pacific have raced to put on flights to meet runaway demand, stimulated by the pent-up desire to travel and savings accumulated in the two years of isolation due to COVID-19. As a result, in 2022, air passenger traffic in the region recovered more rapidly from the pandemic than other regions. For instance, in 2022, air passenger traffic in Asia-Pacific was recorded at 2.2 billion, witnessing a growth of 10% compared to 2021. Moreover, airline companies in the region are implementing fleet expansion plans to cater to the growing air passenger traffic in the major countries in the region. China, India, Japan, and Indonesia account for 70% of the total air passenger traffic in Asia-Pacific and are expected to generate more demand for new aircraft compared to other countries in the region.
- Airlines in Asia-Pacific witnessed a notable recovery in international air passenger markets as pent-up travel demand continued to fuel growth despite increasingly challenging global economic conditions. The passenger load factor for the region's airlines also improved, showing a year-on-year increase of 17.9 ppts and reaching 78.8%. These developments in total ASK and passenger load factor are highly encouraging and support the increasing demand for air travel in the region. Moreover, the healthy growth in international passenger traffic shows strong travel demand from the business and leisure sectors. The rapid increase in air passenger traffic in the region is expected to drive the air transport industry in the future.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Ease of travel restrictions and the rising number of passengers are driving the demand
- The re-opening of Asian markets is boosting traffic through Gulf hubs
- The entry of new airlines is driving the air passenger traffic
- Increasing demand for cargo operations and the opening of new cargo routes are driving the market
- Increasing cargo demand and opening of new routes are driving the market
- The Asia-Pacific economies have been subject to an increase in economic pressure due to a surge in public debt, which has had a negative impact on their defense spending
- The increased inflation has adversely impacted the growth of the region
- In South America, commodity exporters have been able to capitalize on external demand as an engine for growth
- Domestic RPK capacity has fully recovered to pre-pandemic levels
- The demand for domestic travel in the United States witnessed significant growth
- Though inflation in Asia-Pacific increased significantly across the board, the average inflation has been lower than in most other regions
- The ongoing military conflicts have worsened the economic conditions in the region
- The surge in commodity costs and supply disruptions resulted in a high inflation rate in the region
- The growth in domestic travel is increasing the demand
- The increase in demand from domestic travelers is driving the market
- Air cargo demand is driving the air freight traffic growth in the Asia-Pacific
- The opening of new routes and demand for both global and international cargo operations are significant driving factors
- The introduction of new services, capacity, and investment in additional aircraft for air cargo is driving the demand in South America
- The Ukraine-Russia War is expected to improve defense contribution, even with economic growth uncertainty
- Improving economic stability can aid in the growth of North America
- Positive trends in the civil aviation sector are expected to increase revenue passenger kilometer during the forecast period
- Rising air travel is driving the growth of RPKs in the Region
- The region's aviation industry is heavily impacted by inflation, currency depreciation, and slow economic recovery
- A surge in import prices due to the Russia-Ukraine War led to an increase in inflation in the region
- Inflation in the United States has not been this high since 1980
