"With the pace of the climate change debate, we think it is fair to assume that these trends are likely to continue in developed markets," UBS analyst Celine Fornaro said.
UBS said it expected the number of flights in the European Union to increase by just 1.5 per cent per year — half the rate predicted by European jet maker Airbus.
UBS said it could reduce the number of smaller planes ordered from Airbus and its American rival Boeing by 110 each year, the BBC reports.
The slowing growth has been attributed to a burgeoning global movement known as "flight shaming" that pressures people to avoid air travel because of the impact on the environment.
Sweden has spearheaded the movement, which is known locally as "flygskam".
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The country's current most famous citizen, 16-year-old climate activist Greta Thunberg, recently travelled to New York in a zero-emission boat to take part in climate change protests and speak at the United Nations Climate Action Summit.
The cross-Atlantic journey took Ms Thunberg two weeks to complete.
Ms Thunberg has refused to fly on planes since 2015 and encourages others to do the same.
"By stopping flying, you don't only reduce your own carbon footprint but also that sends a signal to other people around you that the climate crisis is a real thing and that helps push a political movement," she told the BBC last month.
She said she wasn't trying to make anyone feel guilty, adding: "I don't fly because of the enormous climate impact of aviation per person."
Inspired by Ms Thunberg's example, a group of European activists plan to sail to a UN climate conference in Chile in December, rather than fly, to pressure world leaders to find alternatives to fossil-fuelled air travel.