The COVID-19 pandemic led air travel numbers to plunge by 60%. While the pandemic is finally starting to subside, that doesn’t mean the airline industry is safe. In fact, airlines face a lot of potential challenges.
SO what exactly could happen in the future that will impact the industry? This article lists six possibilities.
1. Decline Of International Business Meetings
During the COVID-19 pandemic, many meetings moved online. Companies used apps such as Zoom and Microsoft Teams to run their meetings. The advantage of this was that international business meetings could be entirely online.
In the past, a company might put a representative on a plane to go and meet a client. Now it’s more likely that they’ll simply meet online. This means there’s been a decline in international business travel that may not ever recover.
2. Unstable Geopolitics
After the war began in Ukraine, many people are asking how the Russian invasion will affect international travel. The resulting crisis had led to various travel restrictions. For example, commercial planes can no longer fly over Ukrainian airspace.
It’s unclear whether or not the war will escalate further. If it does, it will undoubtedly have an impact on air travel. Many actors in the airline industry are using aerospace and defense ERP systems to handle this uncertainty.
3. Ongoing Covid Issues
While COVID-19 lockdown restrictions are finally easing, this isn’t true in all parts of the world. China, for example still has a zero COVID policy. This means international travel in and out of China is heavily restricted.
COVID-19 has been one of the biggest airline industry challenges, but we’re not out of the woods yet. There is still potential that a dangerous new variant or a significant upswing in cases will once again disrupt global travel.
4. Climate Change
In the wake of the COVID-19 crisis, the public will likely take potential global crises more seriously. One of the biggest threats that the planet faces is climate change. The airline industry is a significant player in this crisis.
It’s possible that society will start to demand changes from the industry so they can be more environmentally friendly.
5. Economic Decline
The 2008 financial crash wasn’t a good time for the airline industry. People had significantly less disposable income, which meant people didn’t travel as much.
While we’re not currently in a recession, the economy is undoubtedly in decline. If this situation gets worse, it could have a significant effect on the airline industry in the coming years.
While there’s been a decline in significant terrorist incidents in recent years, it’s still a big risk for airline companies. Even if a prolific terrorist attack doesn’t involve air travel, they still make people nervous about flying.
The Airline Industry Will Face A Lot Of Challenges
As you can see, the airline industry has a lot it needs to overcome. The industry will need to innovate and plan to make sure running an airline remains profitable.
If you want to learn more about some other business-related topics, check out the rest of our blog posts.