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Key Trends in Airlines

Key Trends in Airlines

  • November 2020
  • 31 pages
  • ID: 5987045
  • Format: PDF
  • GlobalData

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Key Trends in Airlines

Summary
The rapid decline in domestic and international travel caused by the pandemic has created a drastic knock-on impact for the airline industry.With the temporary collapse of tourism flows, many airlines have reduced flight schedules and suffered from lower-than-normal load factors, causing many to rapidly streamline operations in order to navigate the pandemic.

However, airlines are adapting and adopting new technologies and strategies in a bid to cater to changing consumer preferences.

Key Highlights
- Harnessing new technology may be the difference between survival and bankruptcy for many companies. New technology can give airlines an advantage over competitors and give customers a unique experience. American Airlines has announced its implementation of new technologies that set the stage for a smoother customer experience. An electronic wallet, mobile ID and virtual assistant are now available to make flying with the airline as seamless a journey as possible.
- With rising concerns over climate change and increasing commitment to be carbon neutral, cleaner modes of transport will be required. It is vital that companies adapt to demand and enable the next generation of aircraft to use advances in electric and autonomous technology to produce new, greener ways of flying. This combined with the global COVID-19 pandemic means there has been a dramatic shift in market needs and wants.
- Many airlines have benefitted from government support, but not all are so fortunate and many are having to be creative as they look to diversify revenue streams. Examples include clothing lines and using aircraft as restaurants.
- At the beginning of the pandemic, companies were quick to adopt a range of cost-cutting strategies to diminish the effects of COVID-19. As capacity is cut, the need for staff is reduced. Furloughing has been the most common choice so far, allowing airlines to cut costs while maintaining a workforce for later.
- A major challenge for airlines will be following social distancing restrictions, whilst continuing to make a profit. Low-cost carriers rely on high load factors for profitability. It will be interesting to see how airlines address this issue in the coming months.

Scope
- This report provides analysis of key market trends, M&A deals, and company strategies in the airline industry.
- Major airlines are assessed, along with an analysis of different market segments to provide valuable insight. Challenges along with opportunities in the industry are explained in relation to industry examples.

Reasons to Buy
- Gain an insight into the airline industry’s leading players.
- Understand the key traveler types airlines can look to attract
- Look at the impact of the COVID-19 pandemic on this industry
- Gain a detailed understanding of the key trends, issues and challenges facing airlines

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