Market Trends of Middle-East and Africa Commercial Aircraft Industry
This section covers the major market trends shaping the The MEA Commercial Aircraft Market according to our research experts:
The Airline Fleet Expansion Plans is Driving the Market
Aviation passenger traffic increased every year in the last decade. The advent of the COVID-19 pandemic slashed the overall passenger traffic in 2021. However, the market outlook is still positive, as the market expects to witness growth from 2022.
Airlines have already placed several aircraft orders in the last few years to expand their fleet sizes, to cater their services to more passengers, with a positive outlook for the regional and global air passenger traffic numbers, in the past. For instance, in November 2021, Jazeera Airways placed a multi-billion-dollar order with Airbus for 28 single-aisle A320neo family aircraft, including 20 A320neos and eight A321neos. The airline recovered from the pandemic in Q3 2021 with a return to profitability and plans to double its current fleet size to 35 aircraft by 2026.
Furthermore, Qatar Airways expects to take delivery of its first Boeing B777-9 in the second half of 2023 and announced that it was considering ordering the upcoming B777X freighter. The airline was looking to order around 30 cargo aircraft for its fleet renewal program. Qatar's present freight capacity mainly comprises Boeing's aircraft. It flies 25 777-200Fs and two 747-8Fs. The airline has phased out all its remaining A330-200Fs.
The fleet expansion plans of Middle-East and African countries and the existing orders for passenger aircraft by the airlines are expected to drive market growth in the region during the forecast period.
United Arab Emirates is Projected to Exhibit the Largest Market Share in the Market
Dubai Airports revised its passenger traffic forecast for 2021 upwards to 28.7 million (an increase of two million). However, these numbers are still significantly lower than the pre-pandemic levels. Emirates and Etihad are the two major airlines in the United Arab Emirates. Emirates is a state-owned flag carrier airline. It operated a fleet of 255 aircraft, with 195 aircraft on order as of December 2021.
The cargo operations of Emirates in H1 2021 were robust, recording a 39% increase and bringing the business to 90% of the pre-pandemic volume. In this regard, the airline is expanding its freighter aircraft fleet. In November 2021, Emirates Airlines placed a new order with Boeing for two 777 freighters. The aircraft is expected to operate with the airline's SkyCargo division, which currently flies 10 777 freighters.
Etihad Airways is the second-largest airline and the flag carrier of the United Arab Emirates. Etihad Airways operates a fleet of narrow-body and wide-body aircraft from four different aircraft families, i.e., Airbus A320, A350, Boeing 777, and 787 Dreamliner. The company's fleet totals 94 aircraft as of December 2021, with 79 aircraft on order. Furthermore, Etihad is undergoing an organizational transformation as part of its plan to reduce financial losses by 2023. These plans include restructuring its operations by shifting its focus to shorter routes and using narrow-body aircraft.
Such developments and restructuring plans are expected to propel the airlines to expand their fleets, thereby driving the country's growth in the market during the forecast period.
