Industry analysts forecasts that the Asia-Pacific region will lead the world in aircraft delivery by 2033, as air passenger traffic surges and airport infrastructure struggles to keep up. Globally, air traffic will rise 5% a year over the next 20 years, according to market forecasts released by Boeing, Airbus and Deloitte Aerospace and Defense.
According to a forecast by IdeaWorksCompany, passenger fees and other so-called ancillary revenues are expected to represent 6% of all revenues for airlines worldwide in 2013, with frequent-flier programs accounting for 60% of all ancillary revenues. "These fees have become, for many airlines, the difference between a profit and a loss, and that is not lost on airline executives all over the world," said Jay Sorensen, president of IdeaWorksCompany.
The International Air Transport Association forecasts 4.5% growth in global airlines' passenger traffic for 2013. "2013 will not be a banner year for profitability, but we should see some improvement on 2012," IATA CEO Tony Tyler said in a statement.
A global trade group now says the world's airlines should earn a collective profit of $2.5 billion this year, reversing earlier predictions of a $2.8 billion loss. Traffic growth should hit 7.1% for the year, while cargo shipments should grow 18.5%, according to the new forecast. Even so, the association warned that the economic recovery remains fragile and noted that European airlines, beset by labor troubles and volcanic eruptions, will miss out on much of the improved outlook.
Airline traffic in the U.S. will likely continue to slide next year, according to a forecast from Boyd Group International. The aviation consultancy predicts passenger counts will slip 9.9% next year and could take several years to return to pre-recession levels.