Latin America’s largest economy is expected to absorb 30% of the 2,240 additional aircraft that will be needed to serve the region, a study by Boeing shows
David Franson — Foto: Silvia Zamboni/Valor
Brazil will drive the demand for new airplanes in Latin America in the next 20 years and airlines will look mainly for single-aisle jets, which are typically used for domestic flights, a market outlook study conducted by Boeing shows. According to the U.S.-based company, the country is expected to absorb 30% of the 2,240 additional aircraft that will be needed to serve the region, including the Caribbean, in this period.
Most of the new aircraft, or more than 2,000, will be single-aisle jets, said David Franson, the plane maker’s regional director of market forecasting. Boeing, with its 737s, and Airbus, with the A320 and more recently the A220, are the main competitors in global commercial aviation, but China’s Comac is trying to join them with the C919. Brazil’s Embraer has gained traction in the dispute with the smaller and single-aisle aircraft from Boeing and Airbus since the launch of the E-Jets E2 family.
According to the U.S. company, the fleet of commercial aircraft in Latin America is expected to grow more than 85% by 2041. Expansion is likely to account for 60% of new aircraft, while fleet renewal will represent 40%. These jets combined are valued at $335 billion.
According to Boeing’s Commercial Market Outlook (CMO), Brazil will lead this movement, with the potential for more than 670 new aircraft in two decades. “Part of that is going to be determined by the market share of local airlines. But Brazil is the largest economy in the region,” said Mr. Franson.
In the executive’s view, Latin American airlines have recovered strongly after the Covid-19 pandemic and will need more versatile and efficient fleets in an environment of rising fuel costs and sustainability goals assumed for the coming decades.
“The pandemic brought change and versatility is a requirement today,” he said. As for costs, he believes that airlines are better able to manage higher and more stable costs, which are passed on to fares, than volatility.
When asked about the consolidation of airlines in the region, Mr. Franson said that, in Boeing’s view, what matters is healthy competition, which is possible with a larger number of airlines or a few strong competitors.
*By Stella Fontes — São Paulo
Source: Valor International