Successfully Flying Through the Danger Zone
Top Level Summary
Our latest FTI Consulting analysis shows that although the European aviation industry has so far avoided bankruptcies and consolidation due to government support and availability of new capital, they may now be at a crucial tipping point, particularly when faced with an uncertain recovery. Our analysis, based on a snapshot of data as at late May 2021, shows that next 24 months will be critical, and bold moves are required now to ensure that airlines and airports are able to weather the upcoming storm.
In this series of three thought pieces, “The Fight For Survival”, we examine key developments for the aviation sector over the last 12-18 months. Since the onset of the pandemic in March 2020, COVID-19 has unprecedently impacted the global and European aviation industry – the UK has experienced even higher hits with current passenger levels being only at 5% and airline flights operating at 25% relative to 2019.
We consider changing dynamics and what impact they have had with key players in the sector, and why both airlines and airports are now facing unprecedented pressures and challenges.
In our next pieces in this series, we will focus around outlook for the next 24-months and the key actions that those in the sector should look to consider now.
Our Business Transformation team have been helping companies meet these challenges. For an informal discussion, please contact: BusinessTransformationEMEA@fticonsulting.com