Industry Update Feb 2023

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Industry Shape and Trends

According to IATA, passenger air transport measured as revenue passenger kilometre, was down 90% year on year in April 2020. Air freight was down nearly 30% year on year. COVID-19 removed more than 1 billion passengers for the entire year 2020. COVID has had a greater impact than any other crisis in the airline industry’s history. Bloomberg stated that approximately USD$200 billion of market value had been lost in the US aerospace industry alone. As a result, Boeing and Airbus slashed their production forecasts up to 50%.

EMR, Market Researchers stated that low cargo rates and unprofitable cargo businesses have caused many airlines to reduce or abandon cargo fleets over the least ten years, however, during COVID, cargo proved to be a lifeline for the industry. Prior to the pandemic, cargo accounted for about 12% of the sector’s total revenue, however, this figure tripled during the pandemic.

The airline industry is now on the path to recovery and experiencing a period of tremendous growth and transformation, with the introduction of the latest aircraft models from industry giants such as Airbus, Boeing, and Embraer leading to an unprecedented demand for highly-skilled professionals to fill a wide range of new job openings. This has opened up a wealth of opportunities for those looking for rewarding careers in this exciting and ever-changing industry. The aviation industry also continues to innovate with the introduction of advanced technologies such as artificial intelligence, machine learning, and automation.

A report released by Airbus forecasts demand for passenger traffic will grow annually by 3.6% over the next 20 years, demanding 39,490 new passenger and freighter aircraft to satisfy the growth.

EMR also released data indicating that the General Aviation market, comprising that of helicopters, turboprops, business jets and other aircraft types not classed as scheduled airline services, was valued at approximately USD$20.5 billion in 2021 and expected forecast growth between 2023 and 2028 of 3.2%, estimating a value of USD$24.8 billion in 2027. They key market drivers included increased spending on air travel for medical purposes, charter and VIP operations as well as increasing use of air transport for tourism and recreation. The major regions for general aviation are North America, Latin America, the Middle East, Africa, Europe and Asia Pacific. The key industry players include Airbus, Boeing, bombardier, Dassault Aviation and Embraer.

IATA stated the recent estimates suggest demand for air transport will increase on average, by 4.3% per annum over the next 20 years. If this growth path is achieved by 2036, the air transport industry will contribute 15.5 million in direct jobs and USD$1.5 trillion of GDP to the world economy, which could increase to 97.8 million jobs and USD$5.7 trillion in GDP once the impacts of global tourism are taken into account. IATA also indicate that it is expected that no fewer than 200,000 flights per day will takeoff and land worldwide, a near doubling of passenger and cargo numbers by 2036, supporting the forecast demand for pilots, engineers, air traffic controllers and other aviation related jobs.  

As such, those looking to enter the aviation industry can be sure to find a wide range of exciting and rewarding job opportunities. Furthermore, those already employed in the industry can benefit from the latest advancements in technology, ensuring that they remain at the forefront of the industry and can take advantage of the many opportunities available. With the increasing demand for aviation professionals, businesses are turning to specialized training programs to ensure their employees have the necessary skills and knowledge to succeed. Additionally, universities are beginning to offer courses and degree programs for those interested in pursuing a career in aviation. By taking advantage of these opportunities, aspiring aviation professionals can gain the knowledge and skills necessary to succeed in the ever-evolving industry. For those looking to break into the aviation industry, it is important to understand the requirements for success. It is also essential to stay up to date on the latest industry trends and developments, as well as understanding the regulations and standards that must be adhered to. With the right qualifications, experience and training, those entering the aviation industry can be sure to find rewarding and lucrative job opportunities.

Aircraft Orders and Deliveries

Airbus Orders to 31st December 2022

A220 – 53 A319/320/321 neo – 770 A330-900 – -65 (due cancellations) A350F – 24 A350-900/1000 – -14 (due cancellations)

Airbus Deliveries to 31st December 2022

A220 – 105 A319/320/321 neo – 514 A330 – 32 A350 – 60

Boeing Orders to 31st December 2022

B737 – 697 B767 – 31 B777 – 68 B787 – 139

Boeing Deliveries to 31st December 2022

B737 – 386 B747-8F – 5 B767 – 33 B777 – 24 B787 – 31

Embraer Orders to end of 2nd Quarter 2022 (June 30 2022)

E170/175/190/195 – 2000

Embraer Deliveries to end of 2nd Quarter 2022 (June 30 2022)

E170/175/190/195 – 1688

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