Chile has been identified by Airbus as a major market for future sales of their aircraft, following insight released in their Global Market Forecast.
Such insight was revealed in the Latin America & Caribbean section of this forecast.
Without further ado, let’s get into it…
Traffic to Increase Two-Fold in Chile: More Aircraft Needed?
Over the next 20 years, the GDP of Chile is expected to double to $477bn by 2042.
Passenger traffic is expected to reach 54 million by 2042, which is an increase of 2.4% compared to 2019.
With this in mind, Airbus believes there is a need for around 771 aircraft in Chile alone by 2042.
In their report, they said the following:
“The domestic traffic is foreseen as the fastest growing market for Chile”
“[It has] a solid annual increase of 4.2%, remaining the major market and accounting for two-thirds of the country’s air travel demand by 2042.”
“Consequently, the vast majority of the 2042 fleet serving Chile (domiciled and non-domiciled carriers) will consist of single-aisle aircraft (84%).”
“With regard to international growth, the traffic is forecasted to double over the next 20 years, notably within the Latin America and Caribbean region (26% of the demand).”
“The main intra-regional passenger flows will remain between Chile and Brazil, Peru, Argentina, with Peru experiencing the highest rate of traffic increase at 4.2% annually.
“Beyond the intra-regional traffic, the international passenger demand to and from Chile will continue to increase, although at a lower level.”
“The United States will remain a major market, with demand projected to double by 2042.
What About The Rest of the Region?
For Latin America & Caribbean, the need for aircraft has also doubled, just like with Chile.
Between now and 2042, 2,630 aircraft will be needed in the region.
Such growth is expected to require the addition of 2,390 new aircraft, with half expected to be replacements.
This comes off regional growth expected to rise by 3.8% annually.
Furthermore, such a segment is a major one for Airbus, particularly in the single-aisle section of the market.
Like with Chile, the whole Latin America & Caribbean market looks to be a fruitful one for Airbus.
It will be interesting to see what comes from this.
Overall…
In conclusion, such insights from Airbus around Chile are interesting indeed.
With the need for aircraft doubling in the country as well as in the Latin America & Caribbean region, it will be interesting to see how much of that market they will acquire.
Furthermore, it will be interesting to see if their competitor Boeing has the same insight and will penetrate the market also.
Such forecasts come at a time when the Farnborough Air Show is only a few months away, and is the best time to showcase such orders.
All eyes will be on what happens next following this.
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