Airbus and Boeing together delivered 25% more aircraft in 2025 than in 2024, but delivery rates continue to be below historical averages. Delivery rates for narrowbody aircraft are expected to return to trend by 2027, while widebody aircraft delivery rates are not likely to reach normal levels until 2028. We estimate that that by the end of 2027 the industry will be short of about 3400 narrowbody and 1400 widebody aircraft deliveries. The consequences of these missed deliveries are wide-ranging: ticket prices and air cargo rates are higher, and carriers are operating older and less efficient equipment, and at least the passenger market is smaller than it would have otherwise been. The impact has been greater in intercontinental markets that rely on B787s, A330s, B777s, A350s and other larger equipment.
Posts tagged as “Capacity”
Australia’s economy is 12% larger today than it was in 2018. Yet Australian air cargo imports are about 8% below October 2018 peak and about 15-20% below the long-term trend. Exports are 25% below the March 2019 peak. Meanwhile, container volumes are about 6% higher. The share of total non-bulk trade has generally hovered around 30% of total trade but dropped to 26% in the most recent 12 months. However, since mid-2023, both air cargo import and export traffic have been improving. E-commerce and more capacity could lead to a recovery of inbound and a resumption of lost Chinese demand in a recovery of exports. This article discusses the outlook for Australian air cargo.
The level of freight connectivity in parts of South and Southeast Asia will need to improve to support the region's world leading trade growth expectations - particularly in Indonesia and Vietnam. This article looks at the air cargo and container shipping connectivity. Connectivity is a key factor when it comes to sourcing decisions and the relative competitive advantage of different countries.