India, the UAE, and Saudi Arabia are the top aviation growth markets, says lessor Avolon in a new research paper.
It says there is an order backlog of over 3,000 aircraft for airlines in the three countries.
Up to 900 aircraft to set to be delivered over the next three years.
Avolon’s 2026 Outlook: Up Next paper details the key trends in commercia aviation in 2026 and beyond:
Aviation Growth: Regional growth will be varied. India, UAE, and Saudi Arabia are emerging as the next growth regions. European growth is being driven by low-cost carriers while LCCs continue to struggle in the US. In Asia, China has a near-term requirement for 1,000 new aircraft.
Airlines: Lower fuel prices were a key driver for airline performance in 2025, with US$8 billion in reduced fuel expenses accounting for a fifth of the airline industry’s net profits. This trend is expected to continue in 2026, it forecasts.
Manufacturers: Despite overall global uncertainty, large investment decisions are being made with orders for over 2,000 new aircraft placed with Airbus, Boeing, and Embraer in 2025. The market is shifting toward larger aircraft variants, with the A321neo outselling the A320neo aircraft three-to-one over the past three years.
Jim Morrison, Chief Risk Officer of Avolon and paper co-author said: “India, the UAE, and Saudi Arabia are emerging as the next engines of growth with order backlogs that are double their current in-service fleet.”
“Airline financial performance continues to strengthen, with the industry expected to record its fourth consecutive year of profitability.”
