The industry will be smaller, but more profitable and sustainable
According to Embraer, a Brazil-based aerospace company, 15 to 20% of professionals won’t return to their pre-pandemic levels of business travel.
Embraer’s research found that up to a fifth of the world’s business travellers will not be returning to air travel and will instead continue to work remotely.
Smaller aircraft demand is less impacted. This year, demand for aircraft with fewer than 150 seats remains just 8% below its 2012 peak, while demand for aircraft larger than that is 66% below the peak.
Embraer’s Rodrigo Souza e Silva explained: “That’s a trend we see going forward: aircraft up to 150 seats gaining more and more in the market. As more people work from home, we see people leaving the big centres for regional areas, which is creating a new demand for air travel to the smaller airports. This also has an impact on the size of aircraft.”
Another key factor impacting future demand is that flying will become more expensive with the requirements to reduce carbon emissions and environmental damage.
Souza e Silva added: “Flying green will be more expensive than it is today. New methodologies, new requirements, and substantial investment in infrastructure will be reflected in ticket prices. Sustainable aviation fuel, which is likely the best alternative to what we have today, that is currently two to five times more expensive than normal fuel.”
For more information, visit www.executive.embraer.com