BARROZO, ALYSSA JANINE R.

DAVID, REYEL JULIA Q.

FA 4 Article: Top trends shaping the airline industry

For File 2

After identifying the top trends affecting the aviation sector, there are many emerging new current trends that will
continue to drive the airlines in the future. One of those is Rising Passenger Demand and Rebounding Cargo
Volumes where in 2016, the number of passengers tended to increase for about 7.19 percent to 4.1 billion due to
the cargo demand amid globalization and trade which plays a significant role in airline and cargo revenues to
sustain their skeleton international networks in the economic cycle.

Also, to Boost from Higher Capacity Addition refers on the entire capacity growth measured in Available Seat
Miles (ASM) such as low fuel costs, supply of older aircraft off leases, and the growth of Low-Cost Carriers
(LCCs) will increase in capacity but decrease in fares into the industry.

Apart from that, it is important for an airline to Improve their Operational Metrics. With this, it can provide a
service for driving up revenue resulting in any cost reduction in the context of airlines and stakeholders across
aviation regarding the improvement of greater operational efficiency and performance.

Another is the High Load Factors Driving Revenue as the airline is well-known for profitable high fixed costs
and most of the travelers want to find the cheapest tickets which will depend on the seasonality in both peak and
off-peak times to determine good metrics on having a useful insight. According to the International Air Transport
Association (IATA), this indicator is used to measure the percentage of available seating capacity of the passenger.

Thus, the Intensifying Competition from LCCs and ULCCs model offers a combination between low fares and
the most effective customer value proposition that can accommodate all customers’ needs as it focuses on cost
effectiveness especially when it comes to their safety for them to have a smooth travel getaway.
Lastly, the Ancillary Revenue Opportunities Gaining Center Stage. The Ancillary Revenues provide a
sufficient option for passengers as the airline aims to reach out consumers by offering them the right product to
increase its profitability.

Airline industry is an important contributor towards economic development especially here in the Philippines
because it enables the movement of goods and passengers faster and easier. Thus, it provides jobs to the people.
Since, the airline industry is steadily operating, a plan is urgently needed. It helps students who are soon to become
a future airline professionals to re-imagine their strategies and plans to be an effective airline professionals and to
stay competitive. The underlying major trends that we have mentioned above, can surely help the airline industry
to develop more of the passenger experience by providing a better customer service through their needs and wants.
It will provide more better and competitive industry in order to make the passenger feel more confident and safer
when travelling. Also, the airlines should improve not only by providing the passenger and customer but also the
employees of the airline industry in the loop which leads in meeting/exceeding both the satisfaction of customers
and the employees that gives or retains their loyalty from the company.
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