Middle East airlines to place $765b new aircraft orders in 20 years

Airlines in the Middle East will more than double their fleet size to nearly 3,000 commercial jets valued at $765 billion over the next 20 years to cater to an exponential growth in passenger traffic, US aircraft-maker Boeing forecast on Monday.

Of this future demand, wide-bodies will account for 43 per cent, the highest proportion of any region, Boeing said as it unveiled its Commercial Market Outlook (CMO), a forecast of 20-year demand.

The US aircraft maker’s projection is close to the demand estimate made by its transatlantic rival Airbus, which predicted that airlines operating in the Middle East region would require 3,020 new passenger and freight aircraft deliveries by 2040.

“With air travel and tourism continuing to drive Middle Eastern economic growth, the region’s passenger traffic and commercial fleet are projected to more than double over the next two decades,” Boeing said.

Middle Eastern carriers have successfully managed through challenges brought on by the pandemic by adjusting their business models and increasing usage of freighters to maximise revenue. Looking ahead, the region’s fleet is expected to expand to 3,400 airplanes to serve fast-growing passenger traffic as well as cargo demand, Boeing said.

“The Middle East region, a popular connection point for international travelers and trade, is also growing as a starting point and destination for business and leisure passengers,” said Randy Heisey, Boeing managing director of Commercial Marketing for the Middle East and Africa, and Russia and Central Asia Regions. “The region will continue to require a versatile fleet that meets the demands of airline and air-cargo business models.”

More than two-thirds of the upcoming deliveries will enable growth, while one-third will replace older airplanes with more fuel-efficient models such as the Boeing 737 MAX, 787 Dreamliner and 777X.

Notably, air cargo traffic flown by Middle East carriers has continued its substantial growth in recent years; two of the world’s top five cargo carriers by tonnage are based in the region. To serve future demand, the Middle East freighter fleet is projected to reach 170 by 2041, more than doubling the pre-pandemic fleet.

— issacjohn@khaleejtimes.com