What are the current challenges faced by the Airline industry?
The Aviation industry is one of the most important sectors of the American national economy due to its significant contribution to global economic development. We can think of the primary artery of the American aviation industry as the artery of the nation since it ensures the flow of goods, people, resources, capital, and, technology. However, the industry faces some challenges of its own. These are:
- The aftermath of the COVID-19 Pandemic - The COVID-19 pandemic proved to be extremely fatal for almost all industries alike. One of the most hard-hitting industries was the US aviation industry, with extremely bad impacts even after travel restrictions were lifted in many parts of the world. According to a report by IATA, the pandemic caused the airline industry to essentially lose 20 years of gains in passenger traffic.
- Russia’s War on Ukraine - We all know that a war between countries does not bring out any good, and Russia’s war on Ukraine is no exception. The war has brought along several impositions in terms of non-flying sanctions with the introduction of new no-fly zones. The war was directly consequential to fuel prices surging in 2022.
- Fuel Cost and Efficiency - The availability of Jet A fuel at affordable prices still remains the biggest concern of the American Aviation Industry. The dipping financial portfolio of airline companies has been largely influenced by the spike in fuel jet prices. This has severely affected American passengers’ willingness and need to travel through airlines to a large extent.
- Inadequate Airline Infrastructure - The need for having top-end airport infrastructure has been a matter of concern for some time. To cope up with the rising number of passengers and maintain the airline’s reputation, aircrafts too need to be upgraded. But at the same time, some noticeable consistent upgrades in the past have seemed to impact the airline’s finances and created challenges for the aviation market.