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Platts Future Energy
All Things Aviation: Post-pandemic economics, geopolitics and infrastructure (part 1)
Aug 27, 2024
Join Paul McConnell, Head of Outlooks at S&P Global, and James Simpson, Head of Aviation Research, as they navigate the post-pandemic aviation landscape. They discuss the industry's crucial role in emissions reduction amid growing demand. Key insights include the impact of economic recovery on travel trends, the implications of emissions regulations in the EU, and the urgent need for alternative fuels. Discover how the aviation sector can align with global climate goals while facing challenges in fuel supply and environmental policies.
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Quick takeaways
- The aviation industry's demand is closely linked to global economic growth, with regional disparities influencing recovery trajectories post-pandemic.
- Aviation emissions are rising without significant policy intervention, highlighting the need for sustainable fuel alternatives and behavioral changes for decarbonization.
Deep dives
Impact of Economic Growth on Air Travel Demand
The demand for air travel has historically grown in tandem with increasing global incomes and economic development, highlighting the strong correlation between a nation's GDP growth and its aviation sector. However, while aviation emissions are relatively small compared to total greenhouse gas emissions, they have seen significant growth prior to the COVID-19 pandemic. Regional disparities exist, as demonstrated by Asia accounting for 40% of the projected growth through 2050, driven by its emergence as an economic powerhouse. In contrast, factors like inadequate infrastructure in Africa are limiting its growth potential despite economic and demographic advancements.
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Discover
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