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Are Aviation Businesses About To Face Headwinds? Not So Fast

The NBAA projects strong sales for the fourth quarter. [File photo: Adobe Stock]
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Key Takeaways:

  • Despite general recession talks, the aviation industry, encompassing commercial, business, and general aviation, remains resilient with strong demand and robust aircraft sales, as post-pandemic travel is increasingly seen as non-discretionary.
  • Both large and small aviation businesses, including airport concessions, are thriving due to consistent travel demand, with customers largely undeterred by rising costs, which businesses can pass on.
  • The industry faces challenges such as significant worker shortages and increased operational costs (e.g., construction materials), but these have not significantly slowed growth or demand.
  • While the industry's robustness ensures job security, workers may experience slow wage growth as businesses exercise caution regarding future economic outlooks.
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Though there have been general talks of a recession, the aviation industry is, so far, holding its own. 

It’s becoming more apparent that people have labeled post-pandemic travel as non-discretionary. In commercial aviation, passengers are willing to pay a premium for airfare. And in business and general aviation, people are still willing to pay top dollar for their airplanes. In recent updates, both WingX and the International Aircraft Dealers Association (IADA) confirm that the demand for business travel from the first half of the year to now has remained strong. 

Michael Wildes

Michael Wildes holds a master’s degree in Logistics & Supply Chain Management, and a bachelor’s degree in Aeronautical Science, both from Embry-Riddle Aeronautical University. Previously, he worked at the university’s flight department as a Flight Check Airman, Assistant Training Manager, and Quality Assurance Mentor. He holds MEI, CFI & CFII ratings. Follow Michael on Twitter @Captainwildes.

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