Airlines predicted to spend US$2.8 trillion on new aircraft after COVID-19

Airlines around the world are predicted to spend around US$2.8t on new aircraft by 2039 despite the current COVID-19 crisis, according to Cirium, the travel industry data and analytics company. Worldwide deliveries during 2020 are expected to be 45 percent lower than in 2019, but it's predicted the industry will recover enough to spend the nearly NZ$4 trillion total over the next two decades. Asian markets will be the growth engine for the global aviation industry, accounting for an expected 43% of deliveries. The 2020 Cirium Fleet Forecast predicts that 43,315 new passenger and freighter aircraft will be delivered between 2020 and 2039. This represents an 8 percent drop compared to the 20 year outlook in the 2019 Cirium Fleet Forecast and includes some 4600 fewer deliveries in the next decade. Cirium Head of Marketing and Analysis Chris Seymour says COVID-19 has put a handbrake on the speedy growth of aviation over the past few years. "Following 10 consecutive years of uninterrupted demand growth, the 2020 COVID-19 crisis has led to a dramatic reduction in global traffic and record industry losses," Seymour said. "Worldwide deliveries during 2020 are expected to be 45% lower than in 2019. However, the numbers will gradually recover and surpass the previous peak [in 2018] during 2025, assuming traffic bounces back as predicted."<br/>