Embraer forecasts market demand for 720 new jets with 70 to 130 seats in Latin America

Embraer Commercial Aviation released during FIDAE (Feria del Aire y del Espacio), its market outlook for Latin America, which forecasts that the region will take delivery of 720 new jets in the 70 to 130-seat segment over the next 20 years, representing 11% of the worldwide demand for the segment in the period. The 70 to 130-seat jet fleet in service is estimated to grow from the current 310 units to 740 by 2034. Despite the region’s current headwinds, which stem mainly from political and economic instability, prospects for mid and long-term growth remain positive in the coming years. An economic turnaround is expected, addressing macroeconomic imbalances and restoring business confidence. This recovery will result in more equitable income distribution and deeper regional integration, which will boost demand for air travel. Over the last five years, the annual growth in demand for air transport in Latin America has consistently been above the world average of about 5%, hovering at 7%. This trend is expected to continue over the next 20 years, when the region will grow around 6% annually. The growth of the region’s middle class will also create new customers for the airlines, since many people have yet to take their first flight, rendering Latin America ripe for air transport. Comparing the region with a mature air travel market like the U.S. reveals enormous potential for growth: Latin America has 0.4 airline passengers per capita, a figure that is one sixth of the U.S. Along with the expansion of the middle class, new investments in aviation infrastructure will shape the way air transport will grow in the coming years. The broader reach of air transport beyond major financial and industrial centers to mid-sized cities–with population between one hundred thousand and one million–has caused demand to grow nearly 1.5 times faster than to the largest cities. This growth highlights the need for efficient airline service to new low-and mid-density markets, and higher frequencies in existing markets.