AAM
Blog Image

David Dundas
Editor Daily News

Image

Posted:
16-04-2025

Share

IBA: regional travel surge fuels aircraft demand

IBA, the aviation intelligence and advisory company, reported that demand for regional travel remains robust, with revenue passenger kilometres (RPKs) for turboprop and regional jet aircraft increasing by 14.4%, from 22.06 billion in January 2024 to 25.45 billion in January 2025.

Available seat kilometres (ASKs) for the same aircraft have also risen by 10.1% over the same period, from 27,850 billion to 30,660 billion, reflecting the sector's steady recovery and strengthening passenger confidence.

Regional travel has led the recovery of medium and long-haul travel in the wake of the pandemic, driven by its role in feeding broader networks and its typically counter-cyclical nature. During the pandemic, domestic and regional travel faced fewer restrictions compared to long-haul routes, and passengers initially showed greater reluctance to fly long distances.

IBA anticipates that this strong demand will persist and grow at healthy rates, particularly in APAC, where rising populations and improving regional connectivity are driving expansion.

While the overall outlook for regional travel remains positive, IBA noted that some risks persist, particularly related to tariffs and trade restrictions. Inbound US regional travel, especially from Canada, could face challenges. For instance, Porter Airlines, having expanded into the US market with the E195-E2 aircraft, may experience subdued demand.

Engine challenges impacting fleet availability
Despite a positive market outlook, IBA highlighted that issues with the latest technology engines are impacting many airline operations and fleet availability, with 23% of PW1500G and PW1900G-powered Airbus A220 and Embraer E2 series aircraft currently inactive.

Among PW1500G operators, airBaltic and Air France are the hardest hit, with 21% and 27% of their Airbus A220 fleets currently grounded, respectively. Breeze Airways is also affected, with 13% of its total fleet inactive. As sole Airbus A220 operators, both airBaltic and Breeze Airways face heightened risks from these PW1500G setbacks.

The PW1900G-powered fleet, though smaller in size, has also seen notable groundings, affecting Embraer E190-E2 and E195-E2 operators. Porter Airlines and Azul Linhas A

READ MORE
footer