Industry Update
Press Release 4 May 2020

Airlines likely to be smaller post-COVID, says GlobalData

share this article
1 min
GlobalData

Following recent announcements made by several airlines, speculation has grown that some of the world's largest airlines will shrink:

Advertisements

Nick Wyatt, Head of R&A and Travel & Tourism at GlobalData, a leading data and analytics company, offers his view on the situation:

"Announcements made over the last week or so point in one direction: airlines will become smaller - at least in the short-to-mid-term."

"Some high-profile names have come to the conclusion that a leaner, more agile business is what is needed to help them navigate the turbulence expected over the next 2-3 years."

"COVID-19 has hit the airline industry harder than almost any other and this has caused an unprecedented number of issues for carriers. All major airlines are analyzing their operations in a bid to survive as they burn through cash at an alarming rate."

"This will mean that they assess route viability thoroughly and make decisions based upon the findings of such analysis. This could lead to issues with connectivity, but as the UK showed in the case in Flybe, there are limits to the value that governments place on this."

"In Q1 results announcements, Delta CEO Ed Bastian and American Airlines CEO Doug Parker both warned that their respective airlines may well be smaller in the future and in a letter to staff, British Airways appeared to cast doubt over whether it will ever resume operations at Gatwick. It is unlikely that these will be the last such announcements."

About GlobalData

4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData's unique data, expert analysis and innovative solutions, all in one platform. GlobalData's mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

GlobalData | LinkedIn | Twitter

Contact
GlobalData Press Office
Phone: +44 207 832 4399
Send email
Latest News
Advertisements