Industry Risk Overview
The aviation industry continues to face turbulent times as it struggles to adapt to a post COVID world, labour shortages, and rising energy prices linked to the ongoing conflict in Ukraine. However, passenger numbers are on the rise as countries start to open again, and cargo revenues are expected to account for US$191 billion of the industry’s revenues.*
Willie Walsh, The International Air Transport Association (IATA) Director General recently commented: “Airlines are resilient. People are flying in ever greater numbers. And cargo is performing well against a backdrop of growing economic uncertainty. Losses will be cut to $9.7 billion this year and profitability is on the horizon for 2023. It is a time for optimism, even if there are still challenges on costs, particularly fuel, and some lingering restrictions in a few key markets.”
Technological developments, combined with the need to reduce emissions and find sustainable means of using cleaner energy sources, are also driving changes across the industry, both on Earth and in space.
Space has showcased itself as a redundant/uncorrelated asset in time of crisis and driven by a booming commercial industry is emerging as a leading domain of innovation, investment and growth.
Due to its dazzling success and appeal, Space is becoming more crowded and competitive with smaller and opportunistic ventures, using very different risk management approaches and exposure than the established giants of the industry and the state agencies.