Introduction
The airline industry has grown by leaps and bounds over the last decade. Recent advancements in technology have enabled the introduction of services such as in-flight Wi-Fi in many airplanes. This has made it easier for passengers to access and play their favourite Microgaming games at Platincasino.
However, the journey has not always been so smooth. The SARS outbreak, and the COVID-19 pandemic are among the events that shook the airline industry to its core. Let us now look at how it all started and where we are going.
The Past
Air travel began in the early 20th century. The very first airline is credited as being a German airship company, which was founded in 1909. However, flying was a very risky endeavor at that time. By 1919, fixed-wing airlines had been established. In fact, to this day, four of those early airlines still exist. They are KLM in the Netherlands (founded in 1919), Avianca in Colombia (also founded 1919), Australia’s Quantas airline (founded 1921) and Czech Airlines (founded 1923).
Over time, regulations came into force to set standards. Flying became easier, and more and more passenger airlines were established around the world. Most countries now have some form of Civil Aviation Authority that regulates and monitors all aspects of the airline industry including safety and fare pricing for this massive industry.
Current
The late 20th century and early 21st century witnessed new carriers entering the market. This led to a drop in fare prices as competition increased. This went on well until the coronavirus crisis came in 2020. The pandemic greatly devastated the industry when flights were grounded as a way of curbing the spread of the disease.
Estimates show that the financial shock that COVID-19 caused is three times bigger than that of the 2008 world financial crisis. Some carriers have gone out of business. Nevertheless, with the management of the pandemic, the industry is now recovering and many flights are resuming in Europe and beyond.
The Future
Financial challenges aside, the long-term effects of the pandemic are emerging. Business travel will probably take longer to recover with people taking fewer corporate trips. This means airlines will have to undertake a raft of intervention measures in order to regain revenue and stay afloat.
One of these measures is rebuilding brand relationships with their consumers. This may help to attract new customers and convince loyal ones that it is now safe to travel again. In addition, airlines must re-evaluate the economic angles of their operations in order to return to profitability.
Conclusion
From humble beginnings in the early twentieth century, the airline industry has grown into one that represents approximately 3.5% of global GDP. This comes mostly from the sale of passenger air tickets and the growth of tourism.
The Covid-19 pandemic dealt the airline industry a serious blow, which will take time to recover from. Airlines will need to rebuild their brand relationships, and rethink important items such as routes and fares as the world slowly returns to normal.