Successfully Flying Through the Danger Zone: Q3 2021 Update

In the Eye of the Perfect Storm, Bolder Moves Are Required

In our previous August 2021 analysis, we predicted that the next 24 months would be mission critical for both airlines and airports, as ongoing revenue pressure and risks of COVID-related disruptions remain high.

Our latest research which now considers data from Q3 2021 shows that the airline industry indeed remains in a fragile position, particularly given the latest global developments with the Delta and Omicron COVID-19 variants and as a result, the ongoing restrictive governmental travel regulations. Despite a significant improvement vs. 2020, when comparing with 2019 (pre-crisis) levels, airlines are in a much-weakened position. Airlines continue pushing capacity forward in hope of a fast recovery, but have experienced very weak performance (compared to the usually profitable summer quarter), underlining the depth of the crisis and the challenges ahead.

The data also shows that the airlines’ response to these challenges has been variable — and although airlines have made significant efforts, the financial results suggest this has not been enough. The overall need for restructuring and transformation remains high, and bolder moves are now required to ensure resilience in the long-term.

Our Business Transformation team have been helping companies meet these challenges. For an informal discussion, please contact: BusinessTransformationEMEA@fticonsulting.com