The remarkable resilience of the airline industry in the post-pandemic period is being tested once again, this time by a forced restructuring of the global economic order. As a result of recent tariff announcements, economic uncertainties are likely to reduce passenger demand, compel airlines to adjust their capacity, exacerbate supply chain issues, and potentially lead to some airlines going out of business
Recession alarm bells are going off. A global downturn isn't our base case, but it's still worth reviewing how the travel industry might perform in a worst-case scenario. Even in a turbulent market, travel won't stop — it will shift.
Sluggish recovery in the air distribution business, despite record travel demand, signals a disturbing trend for global distribution systems (GDSs). Without a one-size-fits-all strategy, GDSs should look again at their business models as airlines continue to push for direct bookings.
The evolution of the low-cost business model is creating new travel markets, unlocking new customer segments and significantly expanding options for leisure travelers around the globe.
The evolution of the low-cost business model is creating new travel markets, unlocking new customer segments and significantly expanding options for leisure travelers around the globe.
The increasing cost pressures to avoid Russian airspace for flights to China have put Western airlines in a difficult situation. This has forced them to consider halting flights to China, which in turn is benefitting Chinese airlines.
Azul is now the second-largest carrier in Brazil. The pandemic did little to deter its growth, but the airline must find a solution for its increasing debt levels. Could a merger fix this?
Due to increased airport costs and decreased corporate travel, both Low-Cost Carriers and Full-Service Carriers have scaled back operations in Germany, leading to a 10-year low in capacity levels in 2023.
High unit costs, reduced operational efficiencies, and increased competition from network carriers have combined to create a significant challenge for ultra low-cost carriers in the U.S.