The IATA World Air Transport Summit kicked off with a comprehensive overview of the aviation industry’s key figures for 2024.
Despite remarkable recovery strides since the pandemic, airlines still grapple with razor-thin profit margins, highlighting the sector’s inherent volatility and the ongoing challenges it faces.
“The things we think are fixed are not as fixed as we think they are. It is a lot harder to project forward,” Dr. Simon Evenett, Professor of Trade and Economic Development, University of St. Gallen, said, underscoring the unpredictable nature of the air transport sector, where fluctuating demand, regulatory changes, and external shocks can swiftly alter the landscape.
Sustainability focus
Air cargo plays a crucial role in the aviation industry’s sustainability journey. As global demand for air cargo continues to outpace Gross Domestic Product growth, integrating sustainable practices within cargo operations is imperative.
SAF can significantly reduce the carbon footprint of cargo flights, making it a vital component of the industry’s decarbonisation strategy. Additionally, advanced technologies in data management and automation can optimise cargo operations, further enhancing efficiency and reducing emissions.
“The industry must collaborate with governments, fuel producers, and other stakeholders to develop this nascent sector,” Dr. Amrita Sen, Founder and Director of Research at Energy Aspects, outlined
“Despite the hurdles, the transition to SAF presents a substantial opportunity to create new industries and jobs, fostering economic growth alongside environmental benefits.”
Challenges and tensions
During the session, several barriers were identified as limiting industry performance. “With supply chain issues and geopolitical conflicts topping the list, airlines are struggling to procure new aircraft and parts due to ongoing supply chain disruptions,” Nick Allan, CEO of Control Risks, stated.
“These challenges are exacerbated by political tensions and conflicts worldwide, which can destabilise markets and hinder operational efficiency.”
Looking ahead, the aviation industry must navigate these uncertainties with agility and resilience. The continued volatility necessitates robust risk management strategies and adaptive business models.
Investing in digital technologies, such as artificial intelligence and predictive analytics, can provide airlines with the tools to anticipate and respond to market shifts more effectively.
