Quote:
Originally Posted by thenoflyzone
It probably is. Not everyone will survive along the way, but the industry will consolidate and keep growing.
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I'm somewhat curious as what propels this growth.
Mostly I see an industry that's squeezed out a lot of cost in the last couple of decades and now is into incremental improvements under demanding conditions.
Current outlook:
Higher fuel prices? Check.
Higher labour costs for pilots? Check.
Next generation of more fuel-efficient aircraft in fleets? Mostly done.
Wobblier economic conditions? Yep.
The group of high-travel individuals who've propelled the current boom are going to eventually slow their travelling over the next 20 years. It's one thing to enjoy the early years of one's retirement with jet-setting. The latter years are harder.
The current level of affordable airfare is the product of the firehose of capital being pushed into aviation startups on the domestic front. A wave of consolidation will likely just result in higher airfares, depressing demand.
An example: Pearson Airport's traffic doubled from 2003-2019 - a similar rate of growth seems quite ambitious for 2024 on.