Iata cuts long-term passenger growth forecast

Global passenger numbers are expected to drop to 7 billion by 2034, said a report by The International Air Transport Association (Iata) citing negative developments in the global economy that are expected to dampen demand for air transport.

Iata had previously forecast 7.4 billion passengers in 2034 based on a 4.1 per cent average annual growth rate. The revised results now show a dip with a lowered average annual growth rate of 3.8 per cent.

The five fastest-increasing markets in terms of additional passengers per year over the forecast period will be China (758 million new passengers for a total of 1.196 billion), the US (523 million new passengers for a total of 1.156 billion), India (275 million new passengers for a total of 378 million), Indonesia (132 million new passengers for a total of 219 million) and Brazil (104 million new passengers for a total of 202 million).

“The demand for air transport continues to grow. There is much work to be done to prepare for the 7 billion passengers expected to take the skies in 2034,” said Tony Tyler, Iata’s director general and CEO.

“Economic and political events over the last year have impacted some of the fundamentals for growth. As a result, we expect some 400 million fewer people to be traveling in 2034 than we did at this time last year. Air transport is a critical part of the global economy. And policy-makers should take note of its sensitivity. The economic impact of 400 million fewer travellers is significant. Each is a lost opportunity to explore, create social and cultural value, and generate economic and employment opportunities. It is important that we don’t create additional headwinds with excessive taxation, onerous regulation or infrastructure deficiencies,” said Tyler.  – TradeArabia News Service