The dearly departed: the lost airlines of 2019

They are no more, they have ceased to be, they are ex airlines: a summary of the operators which met their demise in 2019.

In this Insight, Ishka summarises the airlines which have closed down during 2019.  We have attempted to identify all the airlines which have ceased operations due to insolvency,  or else lost their operating licenses (and are unlikely to have them returned).  Thus, we have omitted any airlines which currently have suspended operations, and, which may, or may not, survive.  Furthermore, any airline that has nominally ceased to operate but in practice, continues under another name or as part of another airline (as a subsidiary or out-right purchase) has not been included.

Click here to download the data behind the chart.

Click here to download the data behind the chart.

 

The Ishka View
 

Rising fuel costs, tough competition, particularly from Low-Cost Carriers (LCCs), and geopolitical issues coupled with a strong US dollar have all contributed to a harsher environment for airline operators.

Ishka notes around a third of bust airlines last year were European, and there has been a slight rise in the number of chartered airlines failing.

There were also some large and established airlines that did not reach the end of the decade, namely Thomas Cook, Jet Airways, XL Airways France and WOW Air. Many of these failures were not a surprise to the industry with many of these airlines under duress for some time.

Intense competition was a major factor in the collapse of these airlines as well some arguably dated business models.  In contrast, Joon attempted to capture the ‘millennial traveller’ and found a lack of demand and organisational direction quickly led to its collapse.  What is noteworthy is the pace at which the aircraft of these failed airlines find new homes.  The indications are that those ‘in demand’ types, such as the A321 and certainly the 737NG, are being placed by lessors and at reasonable rates.  Overall, 2019 has shown that tough operating conditions can quickly affect airlines’ performance and lead to the early stages of closure.  There will likely be more airlines during 2020 that will struggle to survive as the industry faces new hurdles (for example the 737 MAX grounding, and its reintroduction) as well as enduring a continuation of the conditions of the past year.

 

Boost and accelerate your own airline analysis and discover which airlines are on Ishka’s 2020 negative or amber watch and those demonstrating viable and exciting investment opportunities with Ishka’s new Airline Credit Profiles service  >> More info and request free sample:

Comments:

Sign in to post a comment. If you don't have an account register here.