Boeing Predicts Surging Aircraft Demand in India and South Asia
Boeing projects that Indian and South Asian airlines will expand their fleets by 2,835 commercial aircraft over the next two decades, representing a 400% increase compared to current levels.
This growth is driven by an expanding middle class and robust economic growth leading to increased air travel demand. Boeing's previous 20-year market forecast estimated a demand for 2,705 jets.
Ashwin Naidu, Boeing's regional managing director, highlights the need for airlines to modernize their fleets to meet the increased demand efficiently. Single-aisle aircraft will account for around 90% of the deliveries, with widebody aircraft quadrupling in size through the addition of 370 planes.
Air traffic in India and South Asia is projected to grow at over 7% annually through 2043. India holds the third-largest domestic aviation market globally, behind the US and China, and enjoys the highest growth rate. IndiGo and Air India dominate the market.
Despite the positive outlook, airlines in the region face challenges, including currency pressures, fuel price volatility, low fares, and a competitive imbalance in long-haul operations. Boeing remains committed to increasing aircraft production to meet demand, despite ongoing supply chain disruptions.