According to PricewaterhouseCoopers’ annual report the demand for air travel is projected to double in the next 20 years. PwC’s report was based on the current state of the airline industry across the world. Before the demand can be met however, more variables need to fall into place for there to be worldwide success. The airline industry will have to increase production of planes, hiring more employees, increase their entire infrastructure, and deal with the rising and falling prices of fuel.
Jonathan Kletzel of PwC is the U.S. Transportation and Logistics practice leader, and was quoted on the subject of increased air travel demand with the following statement: “Prospects for the global airline industry are promising, as megatrends including shifts in global economic power and demographics … increasing the demand for air travel.There is a need, however, for industry players to invest in infrastructure upgrades and effective fuel price volatility programs while also addressing aging talent and the growing trained labor shortage.”
The stress of the new demand is starting to show in some of the airlines top CEOs. As of right now about ⅔ of the current CEOs are concerned to say the least about the future challenges. The areas of most concern are China, Latin America, and India due to their infrastructures in place today. Without a major overhaul of improvements airlines could see a major revenue decrease.
In regards to the fuel questions, at the moment airlines have been raking in profits due to the extremely low price of fuel. By current measurements the airline industry will spend $70 billion less on fuel in 2015 than they did in 2014. The forecast for the entire year of 2015 will hover around $29 billion in profits, “(Boeing) predicted a global need for 533,000 new commercial airline pilots and 584,000 new maintenance technicians by 2033.”
As the cost of fuel is low and the airlines scramble to increase their infrastructure and production, and low fuel costs, now might be a perfect time for that vacation you’ve been waiting for. You might get even more than you planned or at least upgrade to first class.