Economic Times: October 19, 2016
New Delhi: India will become the third largest aviation market in the world by displacing the UK in 2026, the International Air Transport Association (IATA) said in a passenger forecast issued today.
The 20-year forecast also says that China will displace the US as the world’s largest aviation market (defined by traffic to, from and within the country) around 2029.
“… the biggest driver of demand will be the Asia-Pacific region, which is expected to be the source of more than half the new passengers over the next 20 years. China will displace the US as the world’s largest aviation market (defined by traffic to, from and within the country) around 2029. India will displace the UK for third place in 2026, while Indonesia enters the top ten at the expense of Italy,” said the IATA forecast.
India is currently the ninth largest aviation market in the world in terms of passengers.
Growth will also increasingly be driven within developing markets. Over the past decade the developing world’s share of total passenger traffic has risen from 24% to nearly 40%, and this trend is set to continue, it further said.
The aviation body also expects air passengers to double in 2035 to 7.2 billion from 3.8 billion air travelers in 2016.
The prediction is based on a 3.7% annual Compound Average Growth Rate (CAGR) noted in the release of the latest update to the association’s 20-Year Air Passenger Forecast, IATA said.
“People want to fly. Demand for air travel over the next two decades is set to double. Enabling people and nations to trade, explore, and share the benefits of innovation and economic prosperity makes our world a better place,” Alexandre de Juniac, IATA’s Director General and CEO was quoted in the release.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.