22-Mar-2017 10:14 AM
FAA projects continued growth for airline industry
US Federal Aviation Administration (FAA) released (21-Mar-2017) its annual aerospace forecast report for fiscal years 2017 to 2037, noting there is confidence the industry has transformed from that of a "boom-to-bust" cycle to one of sustainable profits. The 2017 FAA forecast calls for US carrier passenger growth over the next 20 years to average 1.9% p/a, "slightly lower" than 2016's forecast. The sharp decline in oil prices in 2015-16 was a catalyst for an uptick in passenger growth in 2016 that will continue into 2017. The price of oil is projected to rise from around USD39 per barrel in 2016 to USD47 in 2017, with the FAA forecasting the price will rise to exceed USD100 by 2026 and approach USD132 by 2037. [more - original PR]