What is the outlook for Airline Consolidation in 2023?

What is the outlook for Airline Consolidation in 2023?

“The aviation industry has seen a remarkably low level of failures, restructuring and consolidation in the past couple of years, despite the challenging market that the Covid-19 pandemic and the Russian invasion of Ukraine helped to create”.
Dr Stuart Hatcher Ph.D. Hatcher, Chief Economist at IBA.?

As part of our recent January Market Update webinar, our experts examined the types of operators that we expect to experience consolidation in 2023, and identified the most fragmented global regions.

Key takeaways

  • Smaller network airlines with high unit costs and a short-haul focus are most at risk from consolidation in 2023
  • North America is both the most consolidated, and most profitable region


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IBA's analysis of the airline business models most valunerable to consolidation


Read our full analysis

IBA provides aviation consultancy and advisory services for clients in all parts of the aviation value chain, including the manufacturers (OEMs), the operators (airlines, airports, MROs) and the finance community (lessors, banks, investors).

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Nigel Addison Smith

Adviser to the President of Azerbaijan Airlines on Finance and Strategy

2 年

When you say consolidation, do you mean bankruptcy? If you can contrive a way for Chapter 11 to apply one has a huge advantage as demonstrated by SAS. Tantalisingly juicy assets weren’t enough to enable Flybe to consolidate. Metal neutral JVs are great if you have an attractive network but not the P&L to go with it

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Siegfried Hoelzner

Technical Records Mentor at Lufthansa Technik AG Engine Services

2 年

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