The International Air Transport Association (IATA) in its 20-year air passenger forecasts has come out with some increasingly exciting trends and interesting numbers. According to a recent update, the IATA observing the present trends in air passenger traffic forecast the number to surge to 8.2 billion by 2037 end—in just a span of 20 years. It expects the impetus to the growth coming majorly from Asia Pacific countries. The robust, continuing growth will hinge on a growing shift toward East. If IATA is to be believed, the passenger traffic will expand at a compound annual growth rate (CAGR) of 3.5% over the next 20 years. This is increasingly optimistic news for the global aviation sector and also for job creation, which will boost the economies of numerous countries. However, the prominent trade association of the world’s airlines also cautions against the anticipated large gains, since these may be offset by tough and regressive protectionist measures by governments if they chose so.
Asia Pacific to be Cynosure of Attention for Aviation Sector
The global shift toward East has changed the center of gravity of the overall aviation sector and the results can be favorable for several emerging economies of the East. Over half of the new passenger traffic is expected to be contributed by Asia Pacific. Several regional factors have driven these change: rapidly rising household incomes, large strides taken by economy, and favorable demographic profiles.
There were many changes in the dynamics assuming the constant policies scenarios. For instance, the IATA in its assessment foresees China to surge ahead of the U.S. as the leading aviation market by the middle of 2020. With China to see sustained rise in consumer demand over the coming years, its contribution to the global sector will be unarguably noticeable. India is likely to surpass the U.K. in 2024 and will emerge out as the third, trailing the U.S. Another forecast sees Indonesia to make exceptional growth in air passenger traffic as it expected to garner 3rd position by 2030 from 7th in 2017.
Governments and Infrastructure Operators should Play Proactive Role
Having revealed these promising figures, the IATA expects the governments of countries collaborate with infrastructure operators to proactively take part in development of supporting infrastructures. Charting out a strategic plan for the future and implementing these plans sustainably are undoubtedly the prerequisites for the growth of the air passenger traffic.