FINN
22 April 2024
As the aviation industry navigates through fluctuating demand and evolving consumer preferences, discernible trends have emerged, marked by a strategic focus on sustainability and technological innovation.
Investors are increasingly directing their attention towards carriers that demonstrate a commitment to eco-friendly practices and cutting-edge advancements, reshaping the landscape of aviation finance.
In an article for FINN, Denis Hogan, managing director of Alton Aviation Consultancy, explores this topic in more detail…
The industry has recovered strongly from the unprecedented challenges of the Covid pandemic. As of November 2023, passenger traffic recovered to approx. 99.1% November 2019 levels while cargo traffic was at approx. 97.5% of November 2019 levels. The lifting of travel restrictions and easing of testing requirements contributed greatly to the surge in travel demand across regions and the accelerated recovery of the airline industry.
According to IATA, passenger traffic in 2024 (measured in RPKs) is expected to grow 9.8% from 2023 levels, surpassing pre-pandemic levels by 4.5% for the year. While airlines saw negative profitability in 2020, 2021, and 2022 largely due to the pandemic, they showed positive net margins in 2023 and are expected to remain profitable on aggregate again in 2024.
[Read more: The trends shaping the global aviation industry (wearefinn.com)]
