Dubai, UAE: Oliver Wyman’s recent Airline Economic Analysis 2021-2 found that labor shortages and inflation were the two biggest issues facing the aviation sector as it emerges from the COVID-19 pandemic, making it difficult for airlines to satisfy growing demand and pushing up operational expenses. As summer school holidays begin in the Middle East and airlines get busier, we look at what the findings mean from a regional perspective.

According to André Martins, Partner – Head of IMEA Transportation and Services at Oliver Wyman, “Airlines have been at the receiving end with the fuel price hikes and personnel shortage impacting their bottom-line”.

Key insights for the Middle East include:

 On a more positive note: “Every downturn in the global economy has proven to be the time for new market entrants in the airline industry. This time around, it has been no different – we have seen multiple airline start-ups just launch or prepare for an upcoming launch such as Akasa Air in India, the proposed new airline in Saudi Arabia, and Avelo in the US, among many others” according to Martins.

The Airline Economic Analysis is produced by Oliver Wyman on an annual basis, and is aimed at providing the aviation industry with data and commentary to help it address evolving industry challenges. It looks at global and regional demand and capacity trends in major world markets.

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