Positive Outlook Continues for Aviation in 2022

Across the aviation industry, the positive outlook of the last quarter continues, with high hopes for 2022 in both passenger and cargo operations. New variants of Covid-19 may add risk, but the industry is still confident.

The rising adoption of technologies, a general tightening of operations and leaner airline business models are trends that will continue into 2022, according to the experts. A-ICE takes a closer look at some of the expectations for these trends in the coming year.

Positive Outlook Continues for Aviation in 2022

Tighter operations due to competitive pressure

One of the most interesting predictions for 2022 suggests that competitive pressure is likely to increase. This could take the form of new aircraft leasing companies, new operators, or remodeled existing airlines.

There is an emerging number of industry players that are expected to move to secure a larger market share in the coming years. At the GHI conference back in October 2021, this was a topic of conversation and speculation, particularly within the eCommerce sector, where technology has played an important role for some years.

As eCommerce is likely to continue to drive demand over the coming months, now is the time to tighten operations to remain competitive.

Adoption of more aviation technology

Technology is playing a significant role in the aviation recovery process and its adoption is predicted to accelerate this year. Technology is delivering new ways of supporting passengers by streamlining check-in and security processes, providing contactless options and digital ID, delivering real-time information, and working behind the scenes to maintain passenger flow. This, and the ability to create a low-contact, distanced airport journey is the key to ensuring safeguarding and increasing confidence in travel.

In terms of cargo, there are some airlines that have survived by diversifying as the demand for cargo and freight took off in earnest last year. During the GHI Conference in October 2021, speakers hailed cargo as the ‘savior of the industry’ and while passenger numbers are expected to rise in 2022, the demand for cargo carriage is predicted to soar too.

The latest technologies are often fully integrable into airport systems and can work together to streamline and strengthen passengers, ground handling, and cargo operations. These solutions include automated Weight & Balance, Baggage Reconciliation, Message Distribution Systems and much more, simplifying processes and adding flexibility.

Leaner airline business models

The need to streamline and tighten operations amid competitive pressure means that many operators will be working towards a leaner business model. This may not necessarily mean downsizing, but exploring new avenues in terms of operational cost, speed, and efficiency.

Already, for instance, there are some who have made the move to a pay-as-you-go system to reduce the high fixed costs associated with long contractual aviation agreements. This type of flexibility can make a significant difference to the bottom line, especially during periods of uncertainty or restriction.

Looking ahead and future-proofing

The outlook for 2022 is positive and it is encouraging to see industry experts predicting growth of 47%. Some regions have accelerated to pre-pandemic levels, such as China, where domestic flights are up 6% on 2019 figures.

Future-proofing is something that will be a high priority for many aviation industry professionals and businesses this year. There has never been a better time to look ahead and find a new approach to operational success. Talk to us today or find out more about some of our latest airport solutions.

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