LatAm, Caribbean Aircraft Demand to Double - Airbus

Latin America and the Caribbean will need 2,677 new passenger and freighter aircraft over the next 20 years, Airbus said in a forecast update.

The European airframer said in its Global Market Forecast that demand will grow at an annual rate of 4.4 percent between 2017 and 2036, with aircraft valued at USD$352 billion needed to meet the increase in demand.

Of the total, Airbus says the region will need 2,084 single-aisle planes, and 593 twin-aisle and very large aircraft.

The region’s domestic and regional traffic will grow at 4.8 percent per year, while Middle East routes on 6.1 percent and Asia Pacific with 5.8 percent will see the highest growth.

Airbus President of Latin America and Caribbean Rafael Alonso said the company is optimistic on the region’s long-term outlook, pointing to “clear signs of economic recovery.”

“With long-haul traffic escalating we think Latin American carriers can capture market share that is currently being lost to foreign carriers on routes to Asia-Pacific, Europe, the Middle East and North America,” he said.

With the number of global aviation mega-cities forecast to increase from 58 to 95 over the next two decades, Airbus says Cancun, Panama City, and Rio de Janeiro will join the existing six - Bogota, Buenos Aires, Lima, Mexico City, Santiago and Sao Paulo. The nine megacities will account for 150,000 long-haul passengers daily by 2036.