Aviation Worldwide Outlook
Aviation is on path of growth worldwide. Even so, companies in the industry will need to be concerned with numerous issues in the years ahead. The rise of the Middle Eastern carriers has been a big aviation story of recent years, with astonishing rates of growth in passenger numbers. However, industry players are shifting their focus away from the Gulf carriers to instead the accelerating competitiveness of airlines in China - with domestic and foreign airlines planning to open more than 100 new international routes linking China with regions along the Belt and Road Initiative.
There remain several big challenges in the aviation industry despite the increase in flights, routes, and air passengers. Although the industry expects the number of air passengers to grow in 2018, the increase will also greatly depend on macroeconomic growth. In the longer term, the International Air Transport Association (IATA) expects 7.8 billion passengers to travel in 2036, a near doubling of the 4 billion air travelers in 2017 and this increasing demand will bring a significant infrastructure challenge.
IATA expects Cargo yields to improve by 4 % in 2018 as the growth of e-commerce is expected to support the momentum in the cargo business. However, as the business become more competitive, aviation companies is struggling with increased infrastructure taxes/charges, operational costs and air traffic congestion. Hence the surging cargo operations may also take a hit.