Airline orders at ‘unprecedented levels’
Airline orders are at ‘unprecedented levels’ with low cost carriers expanding their fleet more than others.
In Europe, EasyJet, Ryanair and Norwegian Air Shuttle have placed orders in the past two years totalling hundreds of aircraft, extending to 2021 for fulfilment, reports the Financial Times.
Airlines have managed their seat capacity carefully to counter any downward pressure on ticket prices, KPMG said in a report, but the number of new aircraft due to come into service means there will be greater competition between airlines.
"Airlines around the globe are replacing their fleet at unprecedented levels," said James Stamp, global head of aviation at KPMG.
"Much of the order activity by legacy airlines is driven by the desire to cut operating costs. With fuel costs continuing to be at record levels and a new aircraft generation on the market which is up to 20 per cent more fuel efficient, this trend should not come as a surprise."
Airbus and Boeing have record levels of aircraft on order – at the end of last year Airbus had unfulfilled orders for 5,559 aircraft and Boeing had 5,080.
Low-cost carriers have continued to outperform other airlines in terms of share price, the research also found.
Diane
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025