Latin American aviation set for steady growth

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.