Travellers face higher fares in coming years as green taxes and aircraft shortages increase the cost of flying, an Irish aviation group said on Tuesday.
Aircraft lessor Avolon predicts that the number of passenger ‘planes in the world will almost double to 46,880 as demand for travel continues to increase.
Passenger demand will rise by around 3.5 per cent annually, says the company’s World Fleet Forecast, published on Tuesday.
However, Avolon says higher air fares caused by aircraft supply shortages and environmental taxes means expansion will lag the 5 per cent to 6 per cent of the last two decades.
The lessor also notes that there will also be less scope to deregulate markets, which helped drive growth over the last 20 years.
The Dublin-based company calculates that the 44,300 new passenger jets likely to be delivered over the next 20 years will cost $4 trillion (€3.7 trillion).
Avolon believes this will provide companies in its business with opportunities to aid airlines in financing growth.
Andy Cronin, Avolon’s chief executive, said “emerging markets and their growing middle class underpin our forecast for continued expansion of the global fleet”.
