A new report from leading aircraft lessor Avolon predicts a year of expansion for the aviation industry, but notes concerns over slowing decarbonization efforts and persistent supply chain difficulties.
Key findings from the report, “2024 Outlook: New Horizons”, include:
Passenger Revenue Surge
Airline passenger revenues are expected to climb 12% to $717 billion in 2024, with 4.7 billion people forecast to take to the skies – a record high.
Aircraft Undersupply
Ongoing production shortfalls will increase the value of delivered aircraft and extend their service lives, while a lack of new orders could leave airlines waiting a decade for delivery slots.
India, Middle East Drive Growth
India, Saudi Arabia, and the UAE are poised to become major drivers of aviation sector expansion.
Sustainable Aviation Fuel
SAF is crucial for decarbonization, but scaling production to meet net-zero goals requires a $2 trillion investment.
While bullish on overall growth, the report cautions that production delays and a lack of new, clean-sheet aircraft programs may hamper sustainability goals. Avolon’s executives note that scaling up SAF production and advancing new aircraft designs are key areas to address challenges facing the industry.
