Air travel growth will continue this year, analysts say – The Irish Times

Demand for air journey will proceed rising this yr, however the tempo will gradual because it overtakes pre-Covid totals, trade figures say.

Surging post-pandemic urge for food for journey has spurred robust development in Europe and North America, however subdued Asia-Pacific demand has stored international passenger numbers under 2019 ranges.

Rankings company DBRS Morning Star expects development to proceed this yr to beat 2019 totals by 5 per cent and to normalise to extra historic ranges sooner or later.

The company’s evaluation follows current predictions by main trade physique, the Worldwide Air Transport Affiliation, that development will hit 9 per cent this yr from 38 per cent in 2023.

Continued development in air journey demand implies that passengers can pay extra for his or her flights, significantly as main producers Airbus and Boeing battle to satisfy new plane orders, limiting capability in key markets.

DBRS Morningstar predicts that plane lessors, lots of that are primarily based within the Republic, will generate stable earnings this yr, with larger rents serving to to ease the affect of elevated rates of interest.

Main plane lessor, Dublin-headquartered Avolon, mentioned on Tuesday that strengthening market situations final yr allowed it search larger lease charges for current plane and those who it has ordered.

The Irish firm confirmed that it ordered 200 new jets in complete from Airbus and Boeing for future supply, boosting its development prospects into the subsequent decade.

Avolon owns or manages 577 plane and has ordered a complete of 458. It has 146 airline clients in 65 nations.

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