FAA Forecasts Sustained Growth

March 22, 2017

The US FAA predicted sustained and continued growth in its Aerospace Forecast Report for 2017 to 2037 as the US airline industry marked its seventh consecutive year of profitability.

The Federal Aviation Administration noted that since the recession of 2007-09, US airlines had reduced losses by lowering operating costs, dropping unprofitable routes, and retiring less fuel efficient aircraft. It said there is confidence that the industry has been transformed from one of boom-to-bust cycles to one of sustainable profits.

The report says that despite slow growth in the global economy in 2016, robust demand and low energy prices resulted in record profits for US airlines.

The forecast calls for US airline passenger growth over the next 20 years to average 1.9 percent per year, a slight drop from last year’s forecast.

Traffic, measured in revenue passenger miles (RPMs) is projected to increase by 2.4 percent a year between 2017 and 2037, with US domestic RPMs growing 2.0 percent a year. International traffic (RPM) is expected to grow by 3.4 percent a year.

In the US regional market the FAA is predicting the switch to larger aircraft to continue, with “just a handful” of 50 seat regional jets in 2023, replaced by 70-90 seat aircraft.

(Airwise)