The year is ending, which means two things: another brand new year to look forward to, and the perfect time to look back and evaluate the events that occurred during the past twelve months. The aviation industry witnessed a lot of changes, setbacks, and a lot of opportunities, as well.
2015 was the year in the aviation industry when everybody made money. This was manifested across the industry in several ways. Different types of upgrades surfaced, the most notable of which are the wide range of software sophisticated aviation management systems, like those from My Flight Solutions.
Other than this, the biggest player in the aviation market this year involved oil prices.
Fall From Grace
Earlier this year, analysts predicted a major slide in oil prices. True to their word, oil skidded down and it influenced global airline profits among other markets. It occurred so rapidly and so welcome that for most airlines, it felt like winning the lottery.
Although as the year progressed, it became evident that the slump in prices is not too far from previous lows. Despite this, most airlines have adjusted to being profitable with the change in prices that the windfall flew straight to the bottom line.
Global Economic Issues
More than oil’s fall from grace and the airline industry’s follow-up rise to the slide of prices, the year also witnessed a few issues on global economy. In an industry largely dominated by arcane economic regulations, an ominous stirring in protectionism threatened the industry’s open system.
It seems the only consolation in the wild ride of price slump and protectionism is that all airlines are affected similarly, so these vast nuances and fluctuations mostly don’t discriminate. Currency fluctuations, the strengthening of US dollar and each airlines’ status on hedging come to play, however.
Overall, the aviation industry played a one of a kind year. The oil prices may have skidded down a few notches and a few threats may have affected the industry’s money making process and open system, but it looked like a good year and analysts are positive the next year will be a good one, as well.