What Happened
Global Air Travel Growth Expected To Rebound But Challenges Remain
The global airline industry is expected to experience a rebound in growth to 5% in 2027, but faces significant challenges due to geopolitical turbulence, fuel price shocks, and aircraft shortages. European carriers have benefited from traffic shifting away from Middle Eastern hubs, while low-cost carriers are particularly exposed to fuel price volatility. The industry’s growth is expected to be driven by emerging markets, particularly in Asia, where air travel demand is increasing due to rising household incomes and a growing middle class. According to ING Research, the airline industry’s centre of gravity is shifting eastwards, with India expected to become a major growth engine for the industry.