Market Intelligence: -Airline Aircraft Orders

Boeing Forecasts Demand for 42,600 New Commercial Jets Over Next 20 Years

  • Air travel demand outpacing economic growth as domestic markets fully recover; international traffic returning to pre-pandemic levels by 2024
  • About half of deliveries to replace older jets with more fuel-efficient models, reducing emissions
  • New airplane demand valued at $8 trillion; commercial services valued at $3.8 trillion

With a resurgence in international traffic and domestic air travel back to pre-pandemic levels, Boeing projected global demand for 42,595 new commercial jets by 2042, valued at $8 trillion. Boeing released its 2023 Commercial Market Outlook (CMO), the company’s forecast of 20-year demand for commercial airplanes and services, in advance of the Paris Air Show.

The new CMO comes three years after the pandemic grounded most of the global fleet. Key findings include:

  • Passenger traffic continuing to outpace global economic growth of 2.6%.
  • The global fleet nearly doubling to 48,600 jets, expanding 3.5% per year.
  • Airlines replacing about half of the global fleet with new, more fuel-efficient models.

“The aviation industry has demonstrated resilience and adaptability after unprecedented disruption, with airlines responding to challenges, simplifying their fleets, improving efficiency and capitalizing on resurgent demand,” said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. “Looking to the future of air travel, our 2023 CMO reflects further evolution of passenger traffic tied to global growth of the middle class, investments in sustainability, continued growth for low-cost carriers, and air cargo demand to serve evolving supply chains and express cargo delivery.”

Boeing’s projections for regional demand and key trends through 2042 include:

  • Asia-Pacific markets to represent more than 40% of global demand with half of that total in China.
  • South Asia’s fleet will expand more than 7% annually, the world’s fastest rate, with India accounting for more than 90% of the region’s passenger traffic.
  • North America and Europe each will account for about 20% of global demand.
  • Low-cost carriers will operate more than 40% of the single-aisle fleet in 2042, up from 10% 20 years ago.
  • After omitting demand for Russia and Central Asia in last year’s CMO due to uncertainty in the region, this year’s forecast covers Russia and Central Asia in the Eurasia region, which comprises about 3% of the global fleet by 2042.
  • Commercial Services forecasts a total served market worth $3.8 trillion, including digital solutions that increase efficiency and reduce cost; robust demand for parts and supply chain solutions; growing maintenance and modification options; and effective training to enhance safety and support the pilot and technician pipeline.

Also in the 20-year forecast period, Boeing anticipates demand for these models:

  • New single-aisle airplanes will account for more than 75% of all new deliveries, up slightly from the 2022 outlook, and totaling more than 32,000 airplanes.
  • New widebody jets will be nearly 20% of deliveries, with more than 7,400 airplanes enabling airlines to open new markets and serve existing routes more efficiently.
  • Air cargo will continue to outpace global trade growth, with carriers requiring 2,800 dedicated freighters. This includes more than 900 new widebodies as well as converted narrow-body and widebody models.

Boeing has published the CMO annually since 1961. As the longest-running jet forecast, the CMO is regarded as the most comprehensive analysis of the commercial aviation industry. Boeing will release its complete Pilot and Technician Outlook the week of July 24.

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future and living the company’s core values of safety, quality and integrity.

Source: Boeing Press Release
Photo Credit: Boeing

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Indian Airline, IndiGo, Places Record Order for 500 Airbus A320 Family Aircraft

IndiGo, India’s largest airline by market share, has placed a firm order for 500 A320 Family aircraft, setting the record for the biggest single purchase agreement in the history of commercial aviation. The latest agreement takes the total number of Airbus aircraft on order by IndiGo to 1,330, establishing its position as the world’s biggest A320 Family customer.

The historic purchase agreement was signed by Rahul Bhatia, Promoter & Managing Director of IndiGo, Dr. Venkataramani Sumantran, Chairman and Non-Executive Independent Director of IndiGo, Pieter Elbers, CEO of IndiGo, Guillaume Faury, Airbus CEO, and Christian Scherer, Airbus Chief Commercial Officer and Head of International, at the Paris Air Show 2023.

Pieter Elbers, CEO of IndiGo, said, “It is difficult to overstate the significance of IndiGo’s new historic order for 500 Airbus A320 Family aircraft. An order book now of almost 1000 aircraft well into the next decade, enables IndiGo to fulfill its mission to continue to boost economic growth, social cohesion and mobility in India. At IndiGo, we take pride in being India’s preferred airline for connectivity in and with India; and by doing so, being one of the leading airlines in the world. This order strongly reaffirms IndiGo’s belief in the growth of India, in the A320 Family and in our strategic partnership with Airbus.”

“This landmark order marks a new chapter in Airbus and IndiGo’s relationship that is democratising affordable air travel for millions of people in the world’s fastest growing aviation market. It is also a resounding endorsement of the A320 Family’s best-in-class operating economics that have been powering IndiGo’s growth for almost two decades. We cherish our long-standing relationship with IndiGo and are proud of our success together. We look forward to contributing to the growth of India’s air connectivity in its domestic network and into international markets through the expansion of this formidable partnership”, said Christian Scherer, Chief Commercial Officer and Head of International at Airbus.

New Delhi-headquartered IndiGo is among the fastest growing carriers in the world. Since its first A320neo aircraft was delivered in March 2016, its fleet of A320neo Family has grown into one of the world’s largest with 264 aircraft in operation (162 A320neo, 79 A321neo, 21 A320ceo and 2 A321 freighters. IndiGo placed its first order with Airbus in 2005 (100 A320 Family) and again in 2011 (180 A320 Family including the NEO), in 2014 (250neo Family),  and in 2019 (300 A320neo Family) taking its previous total order book to 830 A320 Family aircraft.

Over the last two decades, the A320neo has been instrumental in democratising air travel in India as an expanding economy and rising disposable incomes continue to add millions of first-time flyers to a booming aviation market.

Worldwide, the A320 Family is the undisputed leader in the single-aisle aircraft category. The aircraft has the widest single-aisle cabin in the sky that incorporates the very latest technologies. It features enhanced aerodynamics and the latest-generation jet engines, resulting in significant reductions in fuel consumption and lower emissions. With more than 8,700 orders from over 130 customers, the A320neo Family is the aircraft Family of choice for airlines around the world across all business models.

About IndiGo

IndiGo is amongst the fastest growing low-cost carriers in the world. IndiGo has a simple philosophy: offer fares that are affordable, flights that are on time, and provide a courteous and hassle-free travel experience across its unparalleled network. With its fleet of over 300 aircraft, the airline is operating well over 1.800 daily flights and connecting 78 domestic destinations and will soon further grow its international footprint to 32 international destinations.

Source: Airbus Press Release
Photo Credit: Airbus

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Fast Growing Saudi Airline, flynas, Places Order for 30 More Airbus A320neo Family Aircraft

Riyadh, Saudi Arabia based airline flynas has firmed up an order with Airbus for 30 new A320neo Family aircraft, taking the airline’s total order with Airbus to 120 A320neo aircraft, including 10 A321XLRs.

The agreement was signed at the Paris Airshow by Bandar Almohanna, flynas Chief Executive Officer & Managing Director and Christian Scherer, Airbus Chief Commercial Officer & Head of International, in the presence of H.E Saleh Al-Jasser Minister of Transport and Logistic Service, H.E. Abdulaziz Alduailj, President of General Authority of Civil Aviation in Saudi Arabia, and Ayed Aljeaid, Chairman of the Board of NAS Holding.

This significant announcement reaffirms flynas’ position as a key player in the Kingdom’s aviation industry and highlights the airline’s ambitious plans to keep expanding its fleet with the world’s most modern and fuel-efficient single aisle aircraft.

“As we continue to grow receiving several awards for excellence in operations and customer services and invest in our offering, we are delighted to confirm our latest order with Airbus,” said Bander Almohanna, the Chief Executive Officer & Managing Director of flynas. “The A320neo Family brings unmatched benefits to our passengers, offering exceptional operational performance and environmental benefits, while helping us provide unique travel experiences at low-cost.”

“Unbeatable economics, longer range capability and the most spacious single aisle cabin have made the A320neo Family the preferred choice of airlines worldwide. That includes in the low cost sector, where carriers operate in especially competitive environments. We look forward to working with flynas as it develops its future fleet and presence in the fast-growing Saudi market.” said Christian Scherer, Airbus Chief Commercial Officer and Head of International.

flynas is an all Airbus operator and was the first airline in Saudi Arabia to acquire the A320neo. The carrier currently operates a fleet of 32 A320neos, 13 A320ceos and four A330-300s. The addition of these new aircraft will support the airline’s growth plans as it continues to expand its international routes and destinations network.

The A320neo Family incorporates the very latest technologies including new generation engines, Sharklets and aerodynamics, which together deliver at least 20 percent lower fuel burn and CO2 emission savings. With more than 8,700 orders from 136 customers, the A320neo Family is the world’s most popular aircraft.

Source: Airbus Press Release
Photo Credit: Airbus

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