Airbus ups estimate of 20-year demand for new planes

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PARIS, Sept 18, 2019 (BSS/AFP) – Airbus on Wednesday increased its
estimate of the number of new aircraft needed over the coming two decades as
airlines seek more fuel-efficient planes even as it trimmed its forecast for
the increase in demand for air travel.

In its latest Global Market Forecast for the next 20 years, the European
aircraft maker said it expects air traffic to grow by 4.3 percent annually, a
drop from the 4.4 percent annual growth it forecast last year.

Nevertheless, Airbus now expects even higher demand for new aircraft than
it did last year thanks to airlines increasingly retiring older planes for
new ones that offer lower operating costs as they consume less fuel.

Airbus anticipates demand for new aircraft over the coming two decades at
39,210 planes, a rise of nearly 2,000 from its forecast last year, due a
sharp increase in replacements. Unlike last year, it did not provide a cost
estimate.

“Developments in superior fuel efficiency are further driving demand to
replace existing less fuel efficient aircraft,” said Airbus in a statement.

However, it scaled back the number of planes it expects airlines to
acquire to meet growth in demand for air travel by more than 1,500 aircraft
to 25,000.

Airbus said that nevertheless the annual growth of more than 4 percent
reflects the resilient nature of aviation from economic shocks and its
increasingly key role in the global economy.

“Economies thrive on air transportation. People and goods want to
connect,” said Christian Scherer, Airbus Chief Commercial Officer and Head of
Airbus International.

“Globally, commercial aviation stimulates GDP growth and supports 65
million livelihoods, demonstrating the immense benefits our business brings
to all societies and global trade,” he added.

The firm also stressed that with its latest more fuel efficient models it
will help the airline industry limit its environmental impact.

“Airbus believes it will largely contribute to the progressive
decarbonisation of the air transport industry and the objective of carbon
neutral growth from 2020 while connecting more people globally,” it said. The
airline industry aims to freeze its carbon footprint at its 2020 level thanks
to more fuel efficient aircraft and through offsets like planting trees.