The airline industry has always been a tough industry. With its global reach, dependence on technology, labour force and fuel oil consumption, it faces many risks and threats. Much of this is outside the control of airlines and operators. This situation has been dramatically emphasized over the past two years by the Covid-19 pandemic, but the challenges to success in the industry are nothing new where airline industry got through the global COVD-19 pandemic better than expected. Our blog looks at some of the main risks facing aviation field.
By the summer of 2022, most countries had lifted their testing and quarantine requirements, and few were still restricting entry.
While everyone is trying to overcome the COVID-19 pandemic, the Omicron wave shows that the virus is still highly contagious and unpredictable. Most governments say lockdowns are over, but fears remain that a new twist could herald a return to travel restrictions.
The rapid spread of coronavirus has been a vivid reminder of the interconnectedness of the modern world. Virus outbreaks will continue to occur, as the monkeypox epidemic shows.
Oil prices hit a 13-year high in March 2022, but have continued to fall since then. Fuel is one of the major costs in operating an airline, and fuel increases can have a significant impact on profitability.
For sure, airlines have strategies to hedge against rising fuel prices, but this has been especially difficult given the unpredictable future demand due to COVID. Over the past two decades, oil prices have proven to be highly volatile (from highs of $126 in 2011 to lows of just $36 in 2016, for example). As in many industries, such unpredictability can be very difficult to manage.
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Unfortunately, there are many examples of the far-reaching impact of major airline system failures.
Here are 2 examples of two major airlines:
The 1st airline experienced a network interruption resulting at least 270 flight cancellations and many more delays. It also missed an additional booking as this issue affected its website and mobile apps in addition to an equipment fire in another year that lead to an estimated 2,300 flights were cancelled, costing the airline $150 million in lost revenue.
The 2nd airline experienced a router failure that caused a cascade of malfunctions in its system. As a result, 2,000 flights were cancelled, costing the airline $54 million to $82 million in lost revenue and increased costs.
These events highlight the risks of trying to build new programs on legacy infrastructure. As with many industries, the underlying technology that supports many airline operations is decades old and in dire need of an overhaul, but the costs involved make it a coveted A pending update has been blocked.
Increased demand combined with a shrinking pool of qualified pilots has led to an ongoing pilot shortage. The aviation sector will require approximately 790,000 pilots and 754,000 new maintenance technicians over the next 20 years due to the expected influx of new aircraft. At the same time, more than 42% of airline pilots will retire within the next decade.
Private sector aviation companies tend to recruit highly qualified former Air Force pilots. Private and business aviation sector suffer the most, as commercial airlines can typically offer more competitive salaries and more regular flight schedules.
As business travel picks up, many expect things to change dramatically. With more and more meetings and interactions moving online, businesses haven’t had to travel much in the past two years. The need for movement and personal contact will continue, but definitely less.
We need to change the way business travel is offered and marketed. Traditional airlines that rely on profitable business and first-class cabin placement will have to rethink their pricing models. On the bright side, charter companies could see renewed interest from companies that lease aircraft.
When the shrinking economy forces individuals and businesses to tighten their budgets, travel is usually high on the list of spending cuts.
The inability to predict when a recession will strike or how long it will last poses constant uninsured risk to the commercial aviation sector.
Flight punctuality is highly weather dependent. In the past, airlines have sometimes expected cancellations depending on the season. But the effects of climate change have made planning nearly impossible.
Global warming has made storms more frequent and severe. This means more and more confusion for travelers as pilots cannot get enough lift to take off safely in the heat. Heat will continue to be a factor in keeping aircraft grounded. With the aviation sector responsible for 2-5% of global emissions, airlines are under pressure to find ways to be more fuel efficient and environmentally friendly.
Inflation will push prices higher in many industries in 2022. Inflation has also hit the travel industry and airlines. Demand for air travel continues to grow, but airlines do not have the inventory to meet demand. Additionally, airlines continue to struggle to meet staffing needs.
Now that airlines have recovered and staff are back, it’s best to get everything done early.To get the best prices for your vacation, you need to book your flights and book early. The good news is that airlines continue to recover, although the recovery is slow. A full return to pre-pandemic capacity could take 2023, but the airline is reported to have recovered to nearly 75-95% of its pre-pandemic capacity.
Despite the ongoing crisis, industry stakeholders must not lose sight of safety. Threats to aviation are constantly evolving as airlines, airports, governments, international organizations and independent airlines strive to improve and evolve their aviation security capabilities.
While security challenges and threats may look different during and after a pandemic, traditional threats remain and should not detract from the importance of incident management, collaboration, and ensuring security. Moreover, in order for the industry to expand and develop its business, it must continuously adapt to the challenges posed by the ever-changing regulatory and global security environment.
Enhanced security is always an advantage as you need to improve operational efficiency within your organization, improve relationships between airports, airlines and aviation authorities, and increase customer satisfaction.
All risks can be mitigated, and all challenges overcome by partnering with trusted flight support Company and your best choice is iJET flight support which offers different services that help you face any challenge you face and operate successfully and in comfort such as:
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