Most Aviation Businesses Aren't Worried About a Recession, for Now

Despite forecasts of a recession in the coming year, segments of the aviation industry are keeping a positive outlook.

Arturo Weiss

Tuesday, November 01, 2022 at 11:01 AM ET

Verified

Pre-owned business jets continue to be in high demand. [Courtesy: Unsplash]

Key Takeaways:

Despite industry challenges like staff shortages, American Airlines reported record revenue and profitable quarters, actively investing in workforce development and debt reduction.
The business aviation market, including aircraft charter and brokerage, remains strong with high demand for used aircraft, low inventory, and many cash transactions making it resilient to economic shifts.
Flight training is experiencing unprecedented growth, driven by the ongoing pilot shortage and record airline hiring, though a strong dollar can create financial strain for international students.

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The airline industry has experienced a trying year. Surges in passenger demand, staff shortages, and bad weather created flight delays and cancellations during peak travel times.

American Airlines had its share of these challenges yet still reported profitable quarters. In fact, during the company’s third-quarter earnings call on October 20, American’s CEO Robert Isom eagerly cited a third-quarter net income of $483 million from record quarterly revenue of $13.5 billion. Isom claims this sets a new record for any quarter in the company’s history.