1% of world GDP to be spent on air transport next year: IATA

Published On: 05, Dec 2017 | Source: moneycontrol.com

With rising air passenger numbers, as much as 1 percent of the global GDP — translating into USD 861 billion — is projected to be spent on air transport in 2018, according to IATA.

The global airlines grouping also said that economic development worldwide is getting a significant boost from air transport.

"New destinations are forecast to rise next year, with frequencies up too; both boosting consumer benefits. We expect 1 percent of world GDP to be spent on air transport in 2018, totalling USD 861 billion," IATA said.

The International Air Transport Association (IATA) represents around 275 airlines comprising 83 percent of global air traffic.

Noting that governments have substantially gained from the airline industry's good performance, the grouping said airlines and customers are forecast to generate USD 136 billion in tax revenues next year.

"That is the equivalent of 45 percent of the industry's GVA (Gross Value Added, which is the firm-level equivalent of GDP), paid to governments in payroll, social security, corporate and product taxes," it said.

Besides, IATA expects the value of international trade shipped by air next year to be USD 6.2 trillion while tourists travelling by air in 2018 are anticipated to spend USD 776 billion.

"The number of scheduled aircraft departures is forecast to exceed more than 38 million next year. That's an average of 73 aircraft departing each minute of 2018," it added.