Global Full-service Airlines Market
Key Trends
- Airline industry suffered during the pandemic: The impact of covid-19 on the airline industry was notable. The social distancing norms and travel restrictions that came into action caused a significant slump in demand for the airline industry. With international travel largely coming to a halt, FSCs were affected more than the LCCs. The cut-short in seats and reduction in the number of flights accelerated the losses and made the airlines run on reserves. The repatriation flights were the major relief for international carriers during the pandemic. Flag carriers have advantages over independent airlines because the respective governments are providing a vital lifeline. With limited cash reserves on hand some of the carriers will possibly have to be nationalized. The non-flag carriers may have to consider possibilities for mergers.
- Business trips to take longer to recover: Now that remote work has become common among corporates, it is likely to stay for a while, even post-pandemic. This will lead to fewer business trips in the near future, leading to business travel taking longer to recover. As most of the profits earned by long-haul flights are from a small number of high-yielding business travelers, and as their number has plummeted drastically during to the pandemic, the FSC market is expected to take longer to recover compared to LCC market. According to GlobalData, the global FSC market is likely to recover by 2024.
- Airlines in debt, price rises and government support to the rescue: The pandemic-led losses have caused airlines to borrowing huge amounts of money, to maintain their day-to-day operations. From credit lines to state-provided aid to bond issuances, the list goes on. Therefore, the sector is likely to see an increase in ticket prices, so that the airlines can stay afloat and service the debt. The recovery period may see demand surpassing the supply, causing price increases. The government support will come in a way that there will be an increased level state ownership such as in case of Air Baltic, TAP Air Portugal, and Lufthansa Group.
- Technology is driving the industry: In the wake of the global pandemic, with social distancing gaining most of the spotlight, the demand for technology-integrated, contactless services is increasing. With rapidly changing customer preferences and the great affinity of customers for quality services, the need for technology advancements is like never before. From online booking/payment to contactless check-in to face recognition, technology integration is trending. To further promote the contactless experience in their inflight entertainment, some airlines are implementing a 'bring your own device' model.
Global Full-Service Airline Company Profiles
The Emirates Group
The Emirates Group (Emirates Group) provides domestic, regional, and international air transportation services. It offers flight services, cargo and ground handling, catering, IT and travel services. The company focuses on hospitality, retail, food and beverage, travel, IT solutions, engineering, and tour operation and air cargo support businesses. It also provides other services including training, event management, and travel. Emirates Group offers its services under the brands of Emirates. It offers flight services to various destinations with a fleet of aircraft globally. The company is wholly owned by the Government of Dubai and is based in Dubai, UAE.
Air France-KLM
Air France-KLM S.A. (Air France-KLM or ‘the group’) provides air passenger and cargo transportation services all over the world. The group also offers aeronautical maintenance and other air-transport-related services, including catering and charter services.
Delta Air Lines, Inc.
Delta Air Lines, Inc. (Delta or 'the company') provides scheduled air transportation for passengers and cargo throughout the US and around the world. The company is based in Atlanta, Georgia.