Airlines

Boeing predicts demand for 42,600 new commercial jets over next 20 years

Boeing predicted that by 2042, there would be a $8 trillion global demand for 42,595 new commercial planes due to an increase in both local and international aviation traffic. In anticipation of the Paris Air Show, Boeing published its 2023 Commercial Market Outlook (CMO), a forecast of the demand for commercial aircraft and services over the next 20 years.

Boeing Forecasts Demand for More than 41,000 New Airplanes by 2041(Opens in a new browser tab)

The new CMO comes three years after the pandemic grounded most of the global fleet. Key findings include:

Passenger traffic continuing to outpace global economic growth of 2.6%.
The global fleet nearly doubling to 48,600 jets, expanding 3.5% per year.
Airlines replacing about half of the global fleet with new, more fuel-efficient models.

Boeing’s projections for regional demand and key trends through 2042 include:

Asia-Pacific markets to represent more than 40% of global demand with half of that total in China.
South Asia’s fleet will expand more than 7% annually, the world’s fastest rate, with India accounting for more than 90% of the region’s passenger traffic.
North America and Europe each will account for about 20% of global demand.
Low-cost carriers will operate more than 40% of the single-aisle fleet in 2042, up from 10% 20 years ago.
After omitting demand for Russia and Central Asia in last year’s CMO due to uncertainty in the region, this year’s forecast covers Russia and Central Asia in the Eurasia region, which comprises about 3% of the global fleet by 2042.
Commercial Services forecasts a total served market worth $3.8 trillion, including digital solutions that increase efficiency and reduce cost; robust demand for parts and supply chain solutions; growing maintenance and modification options; and effective training to enhance safety and support the pilot and technician pipeline.

Also in the 20-year forecast period, Boeing anticipates demand for these models:

New single-aisle airplanes will account for more than 75% of all new deliveries, up slightly from the 2022 outlook, and totaling more than 32,000 airplanes.
New widebody jets will be nearly 20% of deliveries, with more than 7,400 airplanes enabling airlines to open new markets and serve existing routes more efficiently.
Air cargo will continue to outpace global trade growth, with carriers requiring 2,800 dedicated freighters. This includes more than 900 new widebodies as well as converted narrow-body and widebody models.

Airlines

Singapore Airlines & Emirates Grant 8-Month Bonus to Employees Following Record Profits

Singapore Airlines (SIA) and Emirates Group have announced substantial bonus payouts to their employees after reporting record profits for the last financial year.

SIA’s employees are set to receive a bonus equivalent to nearly eight months’ salary, a significant increase from the 6.65 months’ bonus awarded in 2023. This includes an additional 1.5 months for their efforts during the Covid-19 pandemic.

Similarly, Emirates Group has revealed a 20-week bonus for its staff, underscoring their exceptional financial performance. SIA’s financial success was marked by a 24% increase in earnings, reaching $2.7 billion for the fiscal year ending March 31, 2024. This surge was driven by improved operating performance, lower tax expenses, and profits from associates.

A pivotal factor in this growth was the robust demand for air travel, particularly due to the reopening of borders in key North Asian markets such as China, Hong Kong, Japan, and Taiwan. Together with its low-cost carrier Scoot, SIA served 36.4 million passengers, a remarkable 37.6% increase from the previous year.

Emirates Group also reported impressive financial results, with a record revenue of Dh137.3 billion ($37.4 billion), up 15% from the previous year. This growth was propelled by strong customer demand across its various business divisions.

In response to the heightened demand and to bolster future capabilities, the group has expanded its workforce by 10%, bringing the total number of employees to a record high of 112,406. Both Emirates and dnata, also part of the Emirates Group, have ramped up their global recruitment efforts to enhance operational capacities.

The generous bonuses from both SIA and Emirates highlight the companies’ commitment to rewarding their employees for their contributions during a year of significant recovery and growth in the aviation industry. This move not only recognizes the hard work and dedication of their staff but also aims to motivate and retain talent in an increasingly competitive market.

Airlines

United Airlines Introduces Free Seat Switch: Say Goodbye to the Middle Seat

Are you tired of the cramped quarters and limited mobility that come with being sandwiched between two fellow passengers on an airplane?

Well, United Airlines has rolled out a game-changing solution to spare you from the agony of the middle seat. In a savvy move aimed at enhancing passenger comfort and convenience, United Airlines has unveiled a groundbreaking feature on its mobile app that allows travelers to sidestep the dreaded middle seat.

Thanks to this innovative tool, passengers can now sign up for seat notifications, effectively giving them the power to their preferred seat and bid farewell to the discomfort of the middle spot.

But that’s not all – for those who crave extra legroom or are blessed with a taller stature, United’s new offering goes the extra mile. Passengers can now opt for coveted exit rows or bulkhead seats, renowned for their generous leg space, ensuring a more comfortable journey from takeoff to touchdown.

What’s truly remarkable about this service is its simplicity and accessibility. Travelers can make seat selections and request notifications up to 12 hours before their scheduled departure, putting the power to customize their flying experience firmly in their hands. Whether you’re yearning for a window seat with a view or seeking refuge in an aisle seat for easy access to the restroom, United’s app has got you covered.

Here’s how it works: when booking your flight through the United app, you can specify your desired seat preference. Even if your dream seat isn’t initially available, fret not – if it opens up later, you’ll be automatically reassigned and promptly notified of the change. It’s a seamless process designed to ensure maximum comfort and satisfaction for passengers, all with just a few taps on your smartphone.

And the best part? This game-changing service comes at no extra cost to the 3 million flyers who utilize the United app. whether you’re a frequent flier or a first-time traveler, you can enjoy the perks of this innovative feature.

Aerospace

IndiGo to Order 100 Small Planes from Airbus, ATR, or Embraer

IndiGo, India’s leading airline, is in talks with three aircraft manufacturers to acquire a fleet of at least 100 smaller planes, aiming to bolster its regional operations, as per a report by the Economic Times.

The airline’s recent order of 30 A350 aircraft underscores its strategic focus on expanding its reach with wide-body and long-range planes, targeting increased traffic from various regions across the country.

Now, the focus shifts to enhancing connectivity on shorter routes within India’s domestic network, tapping into the regional airline market. IndiGo is currently in discussions with ATR, Embraer, and Airbus for this purpose. With 45 ATR-72 aircraft already in operation, accommodating 78 passengers each, and five more expected this year, the airline is leaning towards ATR, although Airbus A220 and Embraer’s E-175 remain contenders.

Having established itself as a key operator of Airbus A320 aircraft, with over 450 on order for future delivery, IndiGo continues to strengthen its fleet.

This move follows closely on the heels of the recent agreement to purchase 30 Airbus A350-900 aircraft, a significant step that will facilitate the airline’s expansion both domestically and internationally. This deal marks IndiGo’s entry into the wide-body aircraft segment, further solidifying its position in the market.

IndiGo’s strategy includes penetrating tier 1, 2, and 3 cities within India’s regional aviation market using smaller aircraft.

As India maintains its status as the world’s fastest-growing aviation market, airlines are striving to meet the escalating demand amid challenges faced by aircraft manufacturers in meeting production targets.