Market Intelligence: -Airline Hiring

• 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