The aviation industry has dealt with some major challenges in recent decades, from the aftermath of 9/11 and SARS to the global financial crisis. Its recovery was brought to a halt by the COVID-19 pandemic and, more recently, by negative geopolitical developments. Add to that shifting traveler and customer behavior, and we find the industry in an extremely challenging situation. To survive, carriers need to fundamentally transform their business.
Challenges in today’s aviation industry are coming from all directions. Fare offers are increasingly transparent, inflation is soaring, supply chains are under pressure, customers are demanding inexpensive travel and the industry is finding it difficult to recruit the people it needs. Moreover, industry EBIT and demand are not yet back to their pre-pandemic levels. Profits are being impacted by the higher costs faced by most carriers, driven by a combination of global inflation and more fundamental factors such as collective labor agreements, increased maintenance, repair and overhaul costs, and rising fees from infrastructure providers.
Avation PLC (LON:AVAP) is a commercial passenger aircraft leasing company owning a fleet of aircraft which it leases to airlines across the world. Avation’s future focus are new technology low CO2 emission aircraft.
