Airline profits are flying high, thanks to healthy load factors, low fuel prices, and capacity discipline. But there’s another downturn ahead, and airlines must prepare for it now – by leading the way in digital transformation, and boosting their future talent bench.
It should not be controversial to say that all organizations must be capable of some degree of innovation.
In many respects the global airline industry appears to be flying high. Profit margins are up, load factors are at record levels, and fuel costs are down. But those benefits are unevenly distributed, varying widely by region, type of carrier, and individual airline.
Over the past year Egon Zehnder has conducted an extensive research project involving direct interviews with more than 25 CEOs of major airlines around the world, and with leading industry thinkers. Our findings speak to a new competitive landscape.
At a time of great uncertainty and rapid change in many industries, aviation stands out as one of the fastest growing and most dynamic sectors in the global economy.
The airline industry is facing a number of global challenges. Kokkong Chan, Egon Zehnder, Sydney, and Christoph Wahl, Egon Zehnder, Berlin, summarize these challenges and their implications for talent management.