Surging aircraft deliveries will keep airfares under pressure in 2020: IATA

With Boeing 737 Max expected to return to service next year, overall aircraft deliveries are likely to increase in 2020 and this will continue to keep airfares under pressure, said a senior official of global airlines body IATA on Wednesday.

During a presentation here, Brian Pearce, Chief Economist, International Air Transport Association (IATA) said, “Even if demand growth picks up in 2020, there is a threat that supply could rise even faster, given that 2100 plus aircraft that are scheduled to be delivered once, as expected, the B737 Max returns to service.”

When asked if this increased capacity addition will keep the fares stressed across the globe, Pearce said, “Yes. Globally, we are seeing growth in travel but it is relatively low at 4 per cent. We are expecting to see (aircraft) capacity growth above that. So, this will keep fares under pressure.”