Airbus raises jet demand forecast on China growth

Airbus raised its 20-year forecast for jet demand, citing growth in emerging markets, with China on the brink of becoming the world’s aviation powerhouse.

The European planemaker said it saw strong demand for wide-body long-distance jets as airport constraints force airlines to upgrade from smaller planes on some routes, and said it might speed up production plans for A330neo and A350 jets.

Airbus sees total demand for 31,400 passenger and freighter aircraft between 2014 and 2033, an increase of 7 per cent from its previous rolling 20-year forecast. That would be equivalent to US$4.6 trillion of industry revenue at list prices.

During that time, the world’s in-service fleet will double, and China is poised to displace North America as the world’s largest domestic market within a decade, Airbus sales chief John Leahy said in an interview.

Airbus and US rival Boeing are the only manufacturers of wide-body, long-distance jets. They also dominate the market for single-aisle medium-haul aircraft with the Airbus A320 and Boeing 737 models.

Both manufacturers have opted to upgrade their popular small models with new engines to allow airlines to save fuel. Airbus is expected to stage the maiden flight of the revamped A320neo model at its Toulouse headquarters on Thursday.