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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:

  • The aviation industry, encompassing commercial, business, and general aviation, is showing strong resilience against recession fears, driven by sustained high demand for travel and aircraft sales, with customers willing to pay premiums.
  • This robust demand is also benefiting small aviation businesses and fueling strong aircraft sales and long OEM backlogs, even as inflation and higher interest rates lead to increased operating costs passed on to consumers.
  • A significant challenge facing the industry is widespread workforce shortages across various sectors like airlines and airports; however, businesses are exercising caution with wage increases, potentially leading to worker dissatisfaction.
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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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