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

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

Key Takeaways:

Major airlines, exemplified by American Airlines, are reporting record revenues and profits despite operational challenges like staff shortages and demand surges, while also strategically investing in workforce development.
The business aviation market (aircraft charter and brokerage) remains robust, driven by factors such as tax incentives and cash transactions, showing resilience against potential economic downturns and experiencing high demand with limited inventory.
Flight training is experiencing unprecedented growth, largely due to the ongoing global pilot shortage and continuous hiring by airlines, though a strong dollar can impact 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.