Future of Aviation and Airlines: The travel and hospitality industries are amongst the most vulnerable to global or local shocks. That means contingencies, cash reserves, hedging of major risks such as oil prices. But most of all it means agile and bold leadership who think ahead, with more than one strategy depending on how events unfold.
Airline manufacturers and airlines themselves will continue to exploit significant energy savings over the next 20 years from a wide range of new technologies, including better airline engine design, lighter composite fuselage, more direct aircraft routing. Efficiencies will also be gained from fuller planes, faster turnaround, economies of scale (consolidation of smaller airlines). For more on greener aviation, see below.
Passengers will segment further into budget (bus quality), premium budget (especially older travelers), traditional economy, right up to premier business class in the largest long haul routes.
Despite energy price rises, our world’s population will continue to want to fly, and will sacrifice other spending to do so, cushioning the adjustment for the airline industry.
Burning food in plane engines will become very controversial – as it connects energy and food prices, with potentially disastrous consequences for the poorest citizens around the globe.
Most planes will continue to burn carbon-based fuel for decades to come – because the average life expectancy of a new plane today is at least 30 years.