ACI says emerging and developing economies will drive global growth

posted on 2nd November 2018 by Justin Burns
ACI says emerging and developing economies will drive global growth

Airports Council International (ACI) World yesterday published the latest edition of the World Airport Traffic Forecasts (WATF) which reveals that by 2040 emerging and developing economies will account for more than 60 per cent of all passenger traffic.

Global traffic surpassed the 8.2 billion passenger mark in 2017 and the WATF projects that it is expected to double by 2034 based on a projected growth rate of 4.3 per cent per annum. Over the long term, it is projected to grow at an annualized rate of 4.1 per cent, reaching 20.9 billion by 2040.

Over this timeframe, China is predicted to become the largest passenger market with just under four billion passengers which will represent a 19 per cent share of the global passenger traffic market. A number of other emerging economies are projected to rise in the rankings including Indonesia, Turkey and Vietnam.

“The prospects for growth in the passenger market over the short, medium and long term, remain robust and, while there are some concerns around cargo in the short term, the longer-term outlook is more positive,” said ACI World director general, Angela Gittens. “Passenger numbers are set to surpass 8.7 billion in 2018 and the global medium-term forecast shows almost 30% growth in passenger numbers from now until 2022. Aviation’s gravitational centre continues to shift eastward, because future growth in passenger traffic will originate from emerging markets, many of which are in the Asia-Pacific region.

“While this is welcome, surging air transport demand threatens to outstrip current and planned airport infrastructure in many regions around the world. These physical capacity considerations and potential bottlenecks in air transport infrastructure pose challenges to the global industry in accommodating the strong forecast future demand.

“Geopolitical tensions and protectionist policies that retreat from further economic integration and air transport liberalization could also have an adverse effect on the air transport industry.

“The aviation industry must come together to respond to these challenges and help to ensure communities continue to reap the social and economic benefits of air service growth. Policy at a national and global level should be focused on facilitating sustainable growth over the long term.”

The WATF comprises traffic forecasts for more than 110 countries and presents detailed metrics which include total passengers (broken down into international and domestic traffic), total air cargo, and total aircraft movements up to 2040.