Challenges to Growth - Business Almost as Usual
This is T2RL's annual assessment of the outlook for the airline industry with particular emphasis on information
technology. The establishment of this report was a response to the crisis brought on by the Covid 19 pandemic
but it is increasingly clear that there are many other strategic challenges that impact airlines' business plans and the technology they adopt.
Published: 13/01/2025
In 2025, the airline industry will navigate a complex environment of post-pandemic recovery, sustainability
mandates, and geopolitical risks. Airlines that can adapt to sustainability pressures, exploit technological
advancements, and build financial resilience may thrive. However, the pace of recovery and growth will vary by
region, airline business model and airline size. Low Cost and H ybrid carriers and those in emerging markets are
likely to show stronger growth than Network carriers in mature markets.
Geopolitical upheaval has continued through 2024. The war in Ukraine and the multi-front military action by Israel are both in full spate at the time of writing. Other pot ential flashpoints such as the Korean peninsula and Taiwan have mercifully not ignited during the year although the number of current armed conflicts remains at a record high.
The most significant geopolitical change however may yet prove to be the United States presidential election result. President-elect Donald Trump has indicated that he intends to make sweeping changes to most aspects of US policy. These include international diplomacy, trade and energy policies. Any or all of these could have a material effect on the world's airlines as 2025 plays out.
Geopolitical upheaval has continued through 2024. The war in Ukraine and the multi-front military action by Israel are both in full spate at the time of writing. Other pot ential flashpoints such as the Korean peninsula and Taiwan have mercifully not ignited during the year although the number of current armed conflicts remains at a record high.
The most significant geopolitical change however may yet prove to be the United States presidential election result. President-elect Donald Trump has indicated that he intends to make sweeping changes to most aspects of US policy. These include international diplomacy, trade and energy policies. Any or all of these could have a material effect on the world's airlines as 2025 plays out.