UPDATE 1-Airbus hikes 20-year plane demand forecast
* Airbus lifts jet demand forecast by 3.6 pct
* Industry needs $4.4 trillion of jetliners/freighters over 20 yrs
LONDON, Sept 24 (Reuters) - Airbus revised higher its long-term demand forecast by 3.6 percent on Tuesday, saying the aviation industry would need 29,226 new passenger and freight jets worth $4.4 trillion over the next 20 years, led by growth in Asia.
The new 20-year forecast includes 28,355 passenger jets, up 3.7 percent from its previous estimate a year ago, and 871 freighters, up 1.6 percent.
Airbus hiked its forecast for demand for long-distance twin-engined passenger jets such as the upcoming Airbus A350 and Boeing's 787 Dreamliner by 4.3 percent to 6,779 aircraft.
The forecast for short- and medium-haul jets like the Airbus A320 and Boeing 737, which dominate production by the world's largest planemakers, was lifted by 3.7 percent to 20,242 jets.
But amid slow sales of its 525-seat A380 superjumbo and Boeing's 747, Airbus kept its forecast for the world's largest jetliners flat at 1,334 aircraft.
Boeing is significantly less optimistic on demand for the industry's four-engined mammoths, saying powerful twinjets such as its soon-to-be-revamped 777 have displaced many of them. Airbus says urban growth will support superjumbo sales.
In June, Boeing revised up its own 20-year market demand forecast by 3.8 percent as the industry looks beyond the financial crisis to focus on growth in Asia.
Both planemakers anticipate a surge in Asian travel that will keep production at their factories rising and displace North America as the world's busiest region for air travel.
But the group representing most of their airline customers, the International Air Transport Association, shaved its forecast for 2013 airline profits on Tuesday, citing a slowdown in air traffic in India and other parts of Asia.