London, UK, November 5, 2019// – The aviation industry has grown while becoming consistently profitable, significantly safer, and considerably more efficient in managing capacity and removing unnecessary costs over the past 10 years.
From 2010 to 2018, airlines made money every year, registering modest operating margins of 5.5%. They also recorded improvements across key performance indicators, including load factors, on-time performance, and fuel consumption.
Nevertheless, substantial operational challenges remain that cost airlines approximately $74.2 billion in 2018, roughly 1.5 times the industry’s operating profit in the same year.
Operational inefficiencies, such as unplanned maintenance, network disruptions, and mishandled bags, continue to hold back airlines from achieving higher profits and safer and more reliable operations. They also pose a significant threat in the event of a future economic downturn.
Frost & Sullivan invites you to register for our webinar on “Navigating Through Turbulence: Capitalising on Opportunities in the Aviation Industry,” on Thursday, 21 November 2019, at 2:00 pm GMT/ 8 am CT.
Join Frost & Sullivan’s Diogenis Papiomytis, Global Program Director, Commercial Aviation, and Milesh Gogad, Chief Marketing Officer, GE Aviation’s Digital Group, for a discussion on the evolution of the aviation industry across three distinct areas:
1. The value of data and analytics to allow airlines to transform and grow
2. Inefficiencies within airline technical operations, flight operations, and network operations
3. Successful case studies from the aviation industry
“The value of data & analytics in reducing airline operational costs is of concern to airlines globally, though very few airlines have a good understanding of the actual inefficiencies in their operations and the true potential of data & analytics” said Papiomytis.
“We estimate that from industry inefficiency costs of $74.2 billion, approximately $25.3 billion can be saved through digitisation. This figure is incremental to steps airlines have taken to date, trying to remove operational inefficiencies, while acknowledging the gap that cannot be addressed through data & analytics alone, due to other constraints.”
The event will also be recorded and available for on-demand viewing at http://frost.ly/1ti.
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