Market Trends
Latin America air travel set to double in next 20 years
Air travel is expected to double in the next two decades thanks to the anticipated growth of the region's middle class from 350 million people to 520 million by 2037, and evolving airline business models making travel more accessible.
Passenger traffic in the region has more than doubled since 2002 and is expected to continue growing over the next two decades -- increasing from 0.4 trips per capita in 2017 to nearly 0.9 trips per capita in 2037. Historically, domestic traffic was the fastest growing segment, but in 2017 intra-regional traffic grew faster. Less than half of the region's top 20 cities are connected by one daily flight, creating a great potential for the region's airlines to build intra-regional traffic.
Latin America and the Caribbean region will need 2,720 new passenger and freighter aircraft to meet this rising demand. Valued at US$349 billion, this forecast accounts for 2,420 small and 300 medium, large and extra-large aircraft. This implies that the region's in-service fleet will more than double from the 1,420 aircraft in-service today to 3,200 in the next two decades. Of these aircraft, 940 will be for replacement of older-generation aircraft, 1,780 will be accounted for growth, and 480 are expected to remain in service.
The Global Market Forecast (GMF) for 2018-2037, presented at the ALTA Airline Leaders Forum that took place in Panama City, offers a forward-looking view of the air transport sector's evolution.
The full GMF for 2018-2037 is available here.
For more information contact:
Paul Moultrie
Head of Marketing – Airbus Latin America and the Caribbean