New Age of Aviation Offers Investment Opportunities

Ageing air fleets in Europe and the US and air traffic growth in Asia and the emerging markets means there is unprecedented demand for new aeroplanes

EdenTree 26 April, 2016 | 11:53AM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Neville White, Head of Socially Responsible Investing Policy and Research at EdenTree, explains how aviation is on the cusp of a golden age of growth.

Aviation has seen sustained growth through all economic cycles and currently generates around $600 billion of GDP per year, which is forecast to rise to $1 trillion by 2026. In the UK, one of the world’s major aviation economies, the sector contributes 3.4% to GDP.

Aviation is marked by two compelling global phenomena: ageing fleets in Europe and the US, and air traffic growth in Asia and the emerging markets – both contributing to a significant backlog of new aircraft required within the next two decades.

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EdenTree  is an investment management firm with a focus on ESG investing

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