International Air Transport Association: US aviation demand growth will lag behind the global trend

Willie Walsh, Director General of the International Air Transport Association, stated on Tuesday that it is unlikely for travel demand in the United States to keep up with the growth pace of the international market in the short term, with expected growth below the global average. He indicated that global aviation demand is forecasted to grow by 4.9%, while the U.S. market will remain "essentially flat", expecting this trend to continue beyond 2026. Industry consolidation, continued focus on domestic routes despite stagnant demand, aircraft supply shortages, and supply chain issues affecting major U.S. airlines are all reasons contributing to the stagnation of the U.S. aviation market. Walsh also expressed confidence that aviation regulatory agencies can operate without interference, following President Trump's threat to revoke certification of Canadian-manufactured aircraft due to issues with Gulfstream business jet certification. Last week, Trump announced plans to impose a 50% tariff on Canadian-manufactured aircraft and revoke their globally recognized safety permit.