The Mena region’s airline market is the fastest growing in the world, according to Adel Ali, the chief executive of Air Arabia, speaking at the MRO Middle East conference at Dubai World Trade Centre today.
Giving his keynote address, Mr Ali pointed out that future aircraft orders are exceeding growth projections, in addition to significant spend on airport infrastructure in the region.
“Global business travel spending hit a record US$1.5 trillion in 2016,” Mr Ali said. “And economic fundamentals for consumer spending are solid going into 2017.”
David Stewart, a partner at Oliver Wyman, said that the global airline industry is achieving record passenger volumes, record cargo volumes and record net profits. He forecast the fleet will increase by nearly 9,900 aircraft by 2026, representing an average annual growth rate of 3.4 per cent, even amid weakening economic conditions and oil price uncertainty.
“By the end of the forecast period, next-generation aircraft will account for nearly all new deliveries and comprise over half of the global fleet,” he said.
“The increase in new technology will be the prevailing tailwind behind the changes in the global fleet and the airline industry over the next decade.”
chnelson@thenational.ae
Follow The National's Business section on Twitter