Boeing: Southeast Asia Air Traffic Will Triple In 20 Years

Boeing [NYSE: BA] projects that passenger air traffic in Southeast Asia will more than triple over the next two decades, fuelled by above-average economic growth and a rapidly rising middle class. Boeing’s 2024 Commercial Market Outlook (CMO) expects the region’s airplane fleet to more than triple. The CMO reports it will grow to 4,960 aircraft by 2043 to meet soaring air travel demand.

Boeing’s CMO forecasts an annual passenger air traffic growth of 7.2% in Southeast Asia. This value far outpaces the global average growth rate of 4.7%. David Schulte, Managing Director of Boeing Commercial Marketing for Northeast Asia, Southeast Asia, and Oceania, attributes this surge to the region’s strong economic growth. Southeast Asia is forecast to have the second-highest growth rate among global regions. This economic expansion is driving the increased demand for air travel in the area. Furthermore, Schulte also noted that rising household incomes in the region will drive demand for affordable air travel. Thus, benefiting low-cost carriers and leisure-focused airlines.

“Southeast Asia’s growing fleet, particularly single-aisle airplanes, will be crucial in connecting the region’s vast island geography and meeting travel demand across the Asia-Pacific, especially routes to China and Northeast Asia,” Schulte said.

Positive outlook for Southeast Asia Air Travel according to Boeing

Boeing’s outlook also highlights significant milestones for the region by 2043. Southeast Asian airlines will increase their share of the Asia-Pacific fleet from 17% to 25%. To meet growing long-haul travel demand, widebody jets like the 787 Dreamliner will account for one in five new deliveries. Furthermore, airlines will add more than 120 freighters to support global supply chains and meet the rising demand for e-commerce.

Southeast Asia’s commercial aviation industry is also ramping up sustainability efforts. Over the next 20 years, nearly 1,200 new, fuel-efficient airplanes will replace older jets. Boeing also pointed out that the region’s bio-based feedstocks could supply 12% of the world’s sustainable aviation fuel (SAF) demand as the industry aims for net-zero emissions by 2050.

Boeing’s forecast highlights the need for Southeast Asia to hire and train 234,000 new pilots, maintenance technicians, and cabin crew members. This increase in personnel will support the region’s expanding airplane fleet. It also reflects the growing demand for air travel in the coming years.