Country to become fourth largest domestic air travel market in the world
According to the recently released Airbus Global Market Forecast (GMF), Brazil will require 701 new passenger aircraft of more than 100 seats between today and 2030. The 501 single-aisle, 174 twin-aisle aircraft and 26 very large aircraft have an estimated value of $82 billion.
By 2030, Brazil, the largest and fastest growing passenger market for Airbus in Latin America, will become the fourth largest domestic air travel market in the world with an annual growth rate of 7.4 percent, following the United States, China and India.
Brazil is currently ranked fourth in the world in terms of seats on departing flights, offering twice as many seats today than a decade ago. During the same time span, the country’s international and domestic air travel more than doubled, and as of 2010 Sao Paulo became the biggest gateway city for international travel to Latin America.
Looking ahead, the growth is only expected to continue. Between 2010 and 2030, the country’s GDP is expected to skyrocket 144 percent, 20 percent higher than the Latin America average.
Some of the trends driving Brazil’s air travel growth include:
· Outstanding economic growth
· Increased propensity to travel by air, driven by rapid growth of a travelling middle class
· Growing tourism economy contributing to GDP growth
“Brazil has become one of the world’s top 10 markets for new passenger aircraft in terms of aircraft deliveries over the next 20 years,” said Rafael Alonso, Executive Vice President of Airbus for Latin American and the Caribbean. “With international traffic to and from Brazil doubling over the past decade and showing no signs of slowing, Brazilian carriers have a tremendous opportunity to gain greater market share.”
In the past 10 years, tourism has contributed to Brazil’s GDP by nearly 200 percent and by 2020 it is expected to grow another 60 percent. Brazilian tourists are flying in some of the youngest aircraft fleet in the world. The average age of aircraft in Brazil with more than 100 seats is seven years, which is three years younger than the world and the regional average.
In Latin America, Airbus foresees a 20-year demand for more than 2,000 new passenger aircraft, including 1,653 single-aisle, 334 twin-aisle and 41 very large aircraft, estimated at approximately $200 billion. Globally, by 2030 some 27,900 new aircraft valued at $3.5 trillion will be required to satisfy future robust market demand.
With more than 600 aircraft sold and a backlog of nearly 300, over 400 Airbus aircraft are in operation throughout Latin America and the Caribbean. In the last 10 years, Airbus has tripled its in-service fleet, while delivering more than 60 percent of all aircraft operating in the region.