A new report reveals that the global airline market, estimated at US$563.3 billion in 2022, could reach US$744 billion by 2026, growing at a CAGR of 12.7%
According to a report published by Global Industry Analysts Inc, passenger airlines are forecast to grow at a CAGR of 15.2% to reach USD 587.8 billion by the end of the analysis period.
The airline market in the US is estimated at $95.1 billion in the year 2022. The country currently accounts for an 18.79% share of the global market. market. China, the world's second largest economy, is forecast to reach an estimated market size of US$142.8 billion in the year 2026, with a CAGR of 15.9% over the analysis period. Other notable geographic markets include Japan and Canada, each forecasting growth of 9.7% and 10%, respectively, over the review period. Within Europe, Germany is forecast to grow at approximately 11.7% CAGR, while the Rest of Europe market (as defined in the study) will reach $148 billion by the end of the analysis period.
Growth in the post-COVID-19 period will be led by connectivity, aircraft automation, global wealth, immersive worlds, advancing jet propulsion, fluid formats, new energy aircraft, healthy habitats and hyper-personalization with an emphasis on the future of flight. In the future, passengers are expected to tailor their experience to more specific needs. Customers will prioritize space, entertainment and service requirements over purchasing a first or business class ticket. It will be necessary to package the consumer experience differently and make significant changes to the prevailing system. Smart cabin components with embedded sensors are expected to play a decisive role in revamping the way passengers interact with the environment. A responsive cabin accommodates dynamic passenger expectations around comfort, ambience, smart seats and activity areas. There will be continued use of technology to understand consumer behavior and preferences and seamlessly implement on-board customizations. There will be a resurgence of supersonic civil transportation led by an exponential increase in public and private investments in new supersonic technologies along with an increase in the size of the space propulsion market. There will be continued use of technology to understand consumer behavior and preferences and seamlessly implement on-board customizations.
IATA reports progress in recovery
According to a report presented by the International Air Transport Association, the total demand for air travel in January 2022 (measured in revenue passenger kilometers or RPK) increased by 82.3% compared to January 2021. However, it decreased by 4.9% compared to the previous month (December 2021) on a seasonally adjusted basis.
January domestic air travel increased 41.5% compared to the same period a year ago, but fell 7.2% compared to December 2021 on a seasonally adjusted basis.
International RPKs increased 165.6% from January 2021, but fell 2.2% per month between December 2021 and January 2022 on a seasonally adjusted basis.
"The recovery in air travel continued in January, despite hitting a pothole called Omicron. Strengthened border controls did not stop the spread of the variant. But where population immunity was strong, public health systems did not were overwhelmed. Many governments are now adjusting COVID-19 policies to align with those for other endemic viruses. This includes lifting travel restrictions that have had such a devastating impact on lives, economies and the freedom to travel." said Willie Walsh, IATA Director General.
International passenger markets
International traffic in Europe in January increased by 225.1% compared to January 2021, which was a slight increase compared to a 223.3% increase in December 2021 compared to the same month in 2020. Capacity increased 129.9% and load factor rose 19.4 percentage points to 66.4%.
Asia-Pacific airlines experienced a 124.4% increase in January international traffic compared to January 2021, a significant decrease from the 138.5% increase recorded in December 2021 compared to December 2020. Capacity increased 54.4% and load factor increased 14.7 percentage points to 47.0%, still the lowest among regions.
Middle Eastern airlines saw a 145.0% increase in demand in January compared to January 2021, well below the 178.2% increase in December 2021 compared to the same month in 2020. January capacity increased 71.7% compared to the same period a year earlier and load factor rose 17.5 percentage points to 58.6%.
North American carriers experienced a 148.8% increase in traffic in January compared to the 2021 period, a significant decrease compared to the 185.4% increase in December 2021 compared to December 2020. Capacity increased 78.0% and load factor increased 17.0 percentage points to 59.9%.
Latin American airlines saw a 157.0% increase in January traffic, compared to the same month in 2021, an uptick from the 150.8% increase in December 2021 compared to December 2020. January increased 91.2% and load factor increased 19.4 percentage points to 75.7%. , which was easily the highest load factor among the regions for the 16th month in a row.
African airlines traffic increased by 17.9% in January 2022 compared to the previous year, a slowdown compared to the 26.3% year-on-year increase recorded in December 2021. January 2022 capacity increased by 6.3% and load factor increased 6.0 percentage points to 60.5%.
