India Sees Rapid Growth in Asia Pacific Air Traffic, IATA Reports

Asia Pacific Air Traffic to Reach 4.1 Billion by 2044

The International Air Transport Association (IATA) has revealed that the Asia Pacific region is expected to witness a significant growth in air traffic. According to IATA, the number of air passengers in the Asia Pacific is projected to jump to 4.1 billion by 2044 from 1.7 billion in 2024, which would mean 2.4 billion additional passengers.

IATA represents over 370 airlines, accounting for around 85 per cent of the global air traffic. The grouping's Regional Vice President for Asia Pacific, Sheldon Hee, highlighted India's significant role in the growth story of the Asia Pacific region. India is one of the world's fastest-growing domestic civil aviation markets, and the growth in the Asia Pacific has been strong over the last 5-10 years, with no signs of slowing down in the next decade.

However, the region faces several challenges, including infrastructure, taxation, over-regulation, and sustainable growth. To address these challenges, airport capital expenditure is projected to be over USD 2.4 trillion by 2040, with more than half of the amount estimated to be spent in the Asia Pacific to address capacity constraints and congestion.

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The growth in air traffic is expected to lead to the expansion of several Asia Pacific airports, with capacities exceeding 100 million passengers per annum. For example, Changi and Delhi airports are expected to reach capacities of 140 mppa and 150 mppa, respectively. Air transport contributes significantly to the GDP and employment in the Asia Pacific, accounting for around 2.5 per cent of the GDP and 2.2 per cent of the employment.

The aviation industry also generates significant economic benefits, with an estimate suggesting that USD 3.70 is generated in other sectors for every USD 1 of value added in aviation.

The 82nd IATA Annual General Meeting (AGM) and World Air Transport Summit (WATS) is currently taking place in the Brazilian city from June 6-8, with around 1,500 industry leaders, government officials, and media expected to attend the summit. This marks a significant milestone, as the last IATA AGM to take place in South America was in Rio de Janeiro in 1999.