Demand for 10,550 new aircraft worth $600 billion over next 20 years, Embraer at Paris Air Show

Wednesday, June 19, 2019

At the 53^rd International Paris Air Show, Embraer announced that over the next 20 years, steady world demand for 10,550 new aircraft with up to 150 seats worldwide, worth U.S. dollars 600 billion is forecasted. The market growth will account for 55 per cent of the total demand and the remaining 45 per cent will come from replacement of the ageing aircraft.

Efficiency and sustainability remain the underlying drivers to support the projected market demand even as the region-specific outlooks vary. The up to 150-seat segment will form ane integral part of the global air transport eco system.

The economic performance of the airline industry will depend considerably on how far costs will soar and to what extent the industry can sustain a healthy revenue environment. Aircraft in the up to 150-seat segment are the most efficient tool to combine the best in cost efficiency with stronger yields.

John Slattery, President & CEO, Embraer Commercial Aviation said that though the margins are strong, the peak of this great cycle is behind us. The EBIT Margin touched the unprecedented level of 8.6 percent in 2015.

Slattery added that the up to 150-seat segment represents a very adaptable alternative to sustainable growth for the airline industry as it can serve multiple missions, with a very low risk and now, following the arrival of the E2 family, with the most efficient single-aisle platform.

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