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By 2017, worldwide passenger numbers will surge by more than 30% over 2012’s number

Recently the International Airline Travel Association released its forecast for 2013-2017. According to the forecast, it is firmly believe that the world will witness a 30% increase in passengers between 2012 and 2017 till 2017, it is expected that total numbers of airline passengers will be rise to 3.0 billion with additional 930 million passengers over 2.97 billion which were carried in 2012. In this matter, the IATA Forecast 2013- is consent outlook for system wise passenger growth.

Environmental Concerns

By 2017, worldwide passenger numbers will surge by more than 30% over 2012’s number! Good news but it might pose serious threat to Mother Nature. Yes along with its growth, the travel industry will take environmental responsibilities in order to continue its expansion. Now agreed to set global goal for significantly reducing CO2 emissions targets, this will strengthen 50% net of carbon emission by 2050 as compared to 2005′s levels.

In addition of the concerns about Mother Nature, the company its rule to complete the strategy it’s going for MBM (Market Based Measures). This will help filling the gaps until other portions of the strategy are at their full potential.

The 38th Assembly of United Nations International Civil Aviation Organization has agreed that they should work on a Global MBM for Climate Change. In 2016, a detailed proposal will be presented on 39th Assembly.

Outlook for international passenger developments

According to Reports, there’s an expected rise of 25% Passenger growth. This means by 2017, worldwide passenger numbers will surge by more than 30% over 2012’s number.

Least growing regions in terms of passengers

  • South America
  • Peru
  • Colombia
  • Mexico
  • Brazil

Regions with their respective growth

North America: Reports suggest possible minimum passenger growth of 3.5% CAGR.

South America: Estimate to oversee Passenger growth of 4.5%.

Brazil: Plans to establish as third largest domestic market following United States and China. Brazil is expected to welcome over 122 million tourists in 2017. In 2012, there was a potential increase of 30 million passengers from 90 million (growth by 6.5%).

Europe: Europe will overlook Passenger Growth of 4% CARG.

Turkey: Stepping in Top 10 largest markets with 25 million passengers. Still, Turkey is expected additional 18 million people more (growth by 10%). This will be the second fasts domestic growing market ever seen.

Middle East: Expected to experience the strongest possible passenger growth of 6.3 CAGR.

Uzbekistan: Possibly leading the fastest growing market race at the moment, Uzbekistan is all set to oversee additional 10% passenger growth in following years.

United Arab Emirates: Another 30 million passengers (bringing the average up to 7%) will be welcomed in upcoming few years. as for international traffic routes for both Asia and Middle East will be the strongest.

Asia Pacific: International Passenger Growth of 6%. It is estimated that till 2017, traffic in Asia will represent 30% of global passengers.

Related equities

Country Company Ticker
Brazil GOL Linhas A GOL
Canada CAE Inc. CAE
China China Eastern Airlines Corp. Ltd. CEA
China China Southern Airlines Co. Ltd. ZNH
Chile LATAM Airlines Group S.A. LFL
Mexico Grupo Aeroportuario del Pacifico S.A.B. de CV PAC
Mexico Grupo Aeroportuario del Centro Norte S.A.B. de C.V. OMAB
Mexico Controladora Vuela Compa VLRS
UK Eros International Plc EROS
USA American Airlines Group Inc. AAL
USA Air Lease Corporation AL
USA Air Transport Services Group Inc. ATSG
USA AAR Corp. AIR
USA Aircastle LTD AYR
USA JetBlue Airways Corporation JBLU
USA Delta Air Lines Inc. DAL
USA Spirit Airlines Inc. SAVE
USA United Continental Holdings Inc. UAL
Ireland Ryanair Holdings plc RYAAY

References

International Air Transport Association:
http://www.iata.org/pressroom/pr/pages/2013-12-10-01.aspx

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