Demand for air travel will continue growing this year, but the pace will slow as it overtakes pre-Covid totals, industry figures say.
Surging post-pandemic appetite for travel has spurred strong growth in Europe and North America, but subdued Asia-Pacific demand has kept global passenger numbers below 2019 levels.
Ratings agency DBRS Morning Star expects growth to continue this year to beat 2019 totals by 5 per cent and to normalise to more historic levels in the future.
The agency’s assessment follows recent predictions by leading industry body the International Air Transport Association that growth will hit 9 per cent this year from 38 per cent in 2023.
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Continued growth in air travel demand implies that passengers will pay more for their flights, particularly as leading manufacturers Airbus and Boeing struggle to meet new aircraft orders, limiting capacity in key markets.
DBRS Morningstar predicts that aircraft lessors, many of which are based in the Republic, will generate solid earnings this year, with higher rents helping to ease the impact of increased interest rates.
Leading aircraft lessor, Dublin-headquartered Avolon, said on Tuesday that strengthening market conditions last year had allowed it seek higher lease rates for existing aircraft and those it has ordered.
The Irish company confirmed that it ordered 200 new jets in total from Airbus and Boeing for future delivery, boosting its growth prospects into the next decade.
Avolon owns or manages 577 aircraft and has ordered a total of 458. It has 146 airline customers in 65 countries.
