AIRLINES bought about 960 new planes in the first six months of the year - down 18 per cent from a year earlier, according to aircraft manufacturers Boeing and Airbus.
Soaring fuel prices - they have more than doubled in a year - have sent several airlines bust and forced many more to cut routes and jobs.
Despite the fewer purchases, Boeing believes the industry's long-term prospects remain strong.
The American firm, which released its 20-year market forecast yesterday, said the crisis wracking the sector would, in turn, boost the market for more fuel-efficient aircraft.
It estimates that airlines worldwide will take delivery of nearly 30,000 new jets worth a total of US$3.2 trillion (S$4.36 trillion) in the next two decades.
More than four in 10 of the planes will be replacing older aircraft in the fleet.
In Boeing's forecast last year, the number of replacement aircraft was estimated at 36 per cent.
Boeing's vice-president (marketing) for commercial planes, Mr Randy Tinseth, said in a statement: "This year's forecast is rooted in today's realities, but it also recognises the nature of a long-term outlook."
Boeing said its forecast took into account near-term challenges, including "a slowing world economy, surging fuel
prices, slowing traffic growth in some markets, and a concerted action by airlines to balance costs and revenues".
The International Air Transport Association, which represents 230 airlines, said recently the testing times could see carriers lose at least US$2.3 billion this year.
This article was first published in The Straits Times on July 10, 2008.
