|Special report: Tailwinds: 2014 airline industry trends.|
Wednesday, 11th June 2014
Source : PricewaterhouseCoopers LLP
In the second edition of Tailwinds, an overview is provided of the current state of the airline industry on a global level, included is a special report on the 'connected airline' that discusses how new technologies are transforming the way airlines do business.
Part one looks at key metrics in the global airline industry, such as growth and operating income as well as expense patterns since 2004.
The overall picture is favorable. Revenues are at an all-time high, driven by passenger traffic rather than cargo. Expense growth is up as a result of increases in non-fuel items, such as labor and maintenance. The regional outlook shows North American carriers in the most favorable position, followed by Asia-Pacific carriers.
All carriers face more aggressive competition in the coming year: an expansion of the low-cost carrier (LCC) business model, the rapid growth of airlines in the Middle East, and an increase in joint ventures to allow more international flights.
Part two examines how airlines can thrive in an increasingly competitive environment. Thanks to advances in technology and analytics, airlines can now use the massive amounts of data on hand to become a ‘connected airline.’
A connected airline gets the right information to the right places at the right time, which helps to improve decision-making and resolve operational problems in the short-term and reduce costs and increase revenue in the long-term.
Full report can be read HERE