What Can We Expect From the Aviation Industry This 2021?
2020 has been undeniably hard for the whole aviation industry; airlines took a big hit they weren’t prepared for. But now, as we step into the new year, we’re bringing all the lessons and experiences we’ve had.
Here are the things we can expect in 2021.
The pandemic crisis grounded thousands of planes, particularly the older, less efficient aircraft. In a way, it has been good for the environment. It resulted in the removal of tons of carbon emissions in the skies. Covid may have accelerated the progress of sustainable aviation. Companies are now investing billions of dollars into more sustainable aircraft and fuel to keep carbon emissions low even as planes return to the skies. We may look forward to seeing more announcements regarding innovations in sustainability this year.
Aircraft production has significantly decreased last year because of the industry’s unfavorable situation. However, different companies are planning to ramp up their productions this year. Notable manufacturers are Airbus and Boeing. Airbus announced that they would be sticking to their planned Airbus 320 production increase in 2021. It has been good for the company to find new homes for canceled orders. They are looking to produce 47 jets this year. Meanwhile, even as the introduction of Boeing 777X was pushed back to 2022, the company continues the development of the program, and we can expect to hear more news about their newest model.
New Business Models
2020 shook airline companies. Now, they are looking for ways to earn better. One such way is by revising their business models. Companies think that airline subscription has potential. It has seen a rise in the number in recent years, and it is gaining more traction right now. Before the pandemic, Alaska, American, and Delta airlines offered unlimited flights in North America for just $49.95 a month or $599.99 a year. Volaris also introduced its subscription service two years ago. It shouldn’t be a surprise if we see more airlines adapting this method in 2021.
Airlines are hopeful of recovering from bankruptcy and starting to gain profits again this year. Roberto Alvo, LATAM’s CEO, announced that the company would be exiting its Chapter 11 reorganization by the second half of 2021. He also said that LATAM operates at 33% capacity and expects to reach up to 40% by the year’s end. On the other hand, the Mexican low-cost operator Volaris said they expect to be profitable again as early as the 2nd quarter of 2021. We may see similar things happening to other airlines in the future.
There has been news of several startups emerging in South America. Linhas Aereas, Nella Linhas Aereas, and Ultra Air are looking to take their share in the market. We will see if their opportunistic timing pays off. Another startup that is looking to disrupt the industry is David Neeleman’s Breeze. Previously going by the name Moxy, this airline aims to penetrate the industry starting March.
Back to the Skies
Despite the extreme conditions the aviation industry faced last year, most companies hope to bounce back this year. As testing programs are becoming more reliable and vaccines continue to reach more people, it’s only a matter of time until people start flying more often again. This means more planes in the air and more airline staff having jobs. We are excited to see more life in airports around the world.
We’re receiving more and more good news for the aviation industry, and we should be happy. This means that the industry is finally starting to recover and will be able to return to its former glory in time. What’s important is that we continue to support the industry while staying safe.
But don’t forget to take care of your own aircraft! Knisley Exhaust has a whole collection of parts and services that you may need to maintain your plane in the best condition. Contact us, and let’s discuss what you need!