Embraer projects demand for 6400 70 to 130 seat jets over the next 20 years

Embraer released (11-Jul-2016) its 2016 to 2035 Market Outlook, projecting market demand for 6400 new aircraft in the 70 to 130+ seat capacity category, valued at USD300 billion. According to Embraer the 70 to 130+ seat jet fleet segment will be the fastest growing segment among all aircraft seat capacities. The in-service fleet is projected to increase from 2670 aircraft in 2015 to 6690 by 2035. Market growth will drive 63% of total demand and the remaining 37% will be delivered to replace ageing aircraft. Key forecast highlights include:

• Air passenger demand (RPKs) growth: 4.7% p/a;
• Segment demand:
• • 70 to 90 seat segment: 2300 aircraft;
  • 90 to 130+ seat segment: 4100 aircraft;
• Regional demand:
• • North America: 2020 aircraft, 31% of global demand;
  • Asia Pacific: 1690 aircraft, 26%;
  • Europe: 1160 aircraft, 18%;
  • Latin America: 690 aircraft, 11%;
  • CIS: 380 aircraft, 6%;
  • Africa: 230 aircraft, 4%;
  • Middle East: 230 aircraft, 4%;
  • Global: 6400 aircraft. [more - original PR]

Embraer: "Apart from the obvious near-term positive effect on airline balance sheets, the low price of oil may exacerbate the overcapacity problem by tempting airlines to stimulate demand with fuel cost pass-through. Greater control in matching aircraft capacity to market demand will be an ever-present strategy to keep revenues ahead of costs over the long run", John Slattery, president & CEO, Embraer Commercial Aviation. Source: Embraer, 11-Jul-2016.