KPMG report predicts fleet replacement volume will lead to lower airline ticket prices

Increased competition among airlines due to continuing capacity growth may lead to lower airline ticket prices in the coming months and years, according to KPMG’s Transport Tracker a new quarterly publication which looks at the latest market indicators and trends. Airlines worldwide are currently replacing their ageing fleet at unprecedented levels. According to the report, full-service airlines currently have 5,168 aircraft on order and low-cost carriers 3,582. Aircraft manufacturers Airbus and Boeing have also published record levels of order backlogs. At the end of 2013, Airbus had orders for 5,559 aircraft (representing more than eight years of sustained production), and