2010: What does it have in store for aviation sector?

Filed in archive Aviation Travel on January 14, 2010

© lrargerich

2009 had been a turbulent year for the aviation sector with recession taking its toll on number of airline companies causing them to bite the dust but some experts predict that 2010 will be a bit better for the airlines industry giving it the much needed breather it requires for survival.

Now let's see how 2010 could prove out to be better for the industry sans rise in fuel prices, return of the H1N1 virus or any other unfortunate incidence.

Passenger demand has started to see an upswing and this can be supported by the fact that airlines passenger traffic is between its peak in 2008 and nadir in 2009. Even though the airlines industry is expected to lose another $5.6 billion in 2010 but IATA believes the worst is over for now as passenger demand has started to pick up.

There are forecasts of domestic fare rise of anywhere between -2% to +7% of 2009 prices where business class fares are expected to rise between +1% to +8% but this is still questionable. The good thing is in 2010 airlines will be offering loads of bargains in first and business class.

Wi-Fi might become available on flights in 2010 and this could be another ancillary revenue opportunity for the airlines industry.

We might see the return of Registered Traveler (although it might seem unlikely due to the recent bombing attempt) but if it gets the green signal then it would mean additional revenue for the aviation industry as business travelers wont mind paying for the privilege of bypassing security lines.

Whenever I used to feel low my dad used to ask me can you see the streak of light in the clouds and that used to make my eyes lit up. I think the same holds true for the aviation sector. Good Luck!!