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 operational challenges, major airlines like American Airlines achieved record revenues and profits in Q3, actively investing in debt reduction and workforce development.
The private aircraft charter and sales market is experiencing strong demand and low inventory, driven by factors like cash transactions, airline cutbacks, and bonus depreciation, even amidst talks of a recession.
Flight training continues at an unprecedented pace due to the ongoing pilot shortage and consistent airline hiring, though a strong dollar may financially strain international cadets.

See a mistake? Contact us.

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.