Future of Asia Pacific Airline Industry
2.1 Introduction
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Despite adverse economic conditions in the recent past, the airline industry globally has proven to be resilient. After a short downturn, the industry recovered quickly and, in fact, grew moderately. From 2011 to 2031, annual air traffic is expected to increase at a compound annual growth rate (CAGR) of 5%, and reach about 13.8 billion revenue passenger kilometers (RPK).
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While the mainstay markets (Europe and North America) have not shown significant growth, and are not expected to grow substantially in the near future, Asia Pacific has emerged as a savior of the global air travel industry, driving growth and expansion. With the EU struggling to contain its debt crisis and the US registering stagnant growth in air travel, consumers in these regions are increasingly rethinking their air travel needs.
Freight volumes in these regions have also grown sluggishly in the recent past. All the while, Asia Pacific has been registering healthy growth.
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2.2 World Airline Industry Forecasts
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The International Air Transport Association (IATA) released an industry traffic forecast showing that airlines expect to welcome some 3.6 billion passengers in 2016. That’s about 800 million more than the 2.8 billion passengers carried by airlines in 2011.
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This industry consensus outlook for system-wide passenger growth sees passenger numbers expanding by an average of 5.3% per annum between 2012 and 2016. The 28.5% increase in passenger numbers over the forecast period will see almost 500 million new passengers traveling on domestic routes and 331 million new passengers on international services.
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International freight volumes will grow at 3% per annum to total 34.5 million tonnes in 2016.
That is 4.8 million more tonnes of air cargo than the 29.6 million tonnes carried in 2011.
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The emerging economies of Asia-Pacific, Latin America and the Middle East will see the strongest passenger growth. This will be led
!
Despite adverse economic conditions in the recent past, the airline industry globally has proven to be resilient. After a short downturn, the industry recovered quickly and, in fact, grew moderately. From 2011 to 2031, annual air traffic is expected to increase at a compound annual growth rate (CAGR) of 5%, and reach about 13.8 billion revenue passenger kilometers (RPK).
!
While the mainstay markets (Europe and North America) have not shown significant growth, and are not expected to grow substantially in the near future, Asia Pacific has emerged as a savior of the global air travel industry, driving growth and expansion. With the EU struggling to contain its debt crisis and the US registering stagnant growth in air travel, consumers in these regions are increasingly rethinking their air travel needs.
Freight volumes in these regions have also grown sluggishly in the recent past. All the while, Asia Pacific has been registering healthy growth.
!
2.2 World Airline Industry Forecasts
!
The International Air Transport Association (IATA) released an industry traffic forecast showing that airlines expect to welcome some 3.6 billion passengers in 2016. That’s about 800 million more than the 2.8 billion passengers carried by airlines in 2011.
!
This industry consensus outlook for system-wide passenger growth sees passenger numbers expanding by an average of 5.3% per annum between 2012 and 2016. The 28.5% increase in passenger numbers over the forecast period will see almost 500 million new passengers traveling on domestic routes and 331 million new passengers on international services.
!
International freight volumes will grow at 3% per annum to total 34.5 million tonnes in 2016.
That is 4.8 million more tonnes of air cargo than the 29.6 million tonnes carried in 2011.
!
The emerging economies of Asia-Pacific, Latin America and the Middle East will see the strongest passenger growth. This will be led