Latin American aviation set for steady growth
Thursday, April 13, 2017
Significance
Latin America has a younger aircraft fleet than the world average. Nevertheless, Airbus and Boeing are predicting a requirement for between 2,500 and 3,000 new aircraft to cope with growing demand for air travel in the region over the next 20 years. Reflecting the expansion of low-cost carrier (LCC) operations, the bulk of the new orders will be for single-aisle aircraft.
Impacts
- Most growth will come from the region’s expanding budget sector.
- New no-frills airlines will force many existing carriers to offer similar options or set up LCC subsidiaries.
- Bullish prospects for LCC growth will attract inward investment to domestic airlines.
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