- Expert view
- On-Time Performance
Resilient performance for airlines in a challenging year
Global airlines must deal with global problems in order to fulfill their missions. 2023 presented some significant headwinds.
By David White, Senior Director of Advanced Initiatives, Cirium
Global airlines must deal with global problems in order to fulfill their missions. 2023 presented some significant headwinds that all carriers in this category had to face.
Despite the challenges, the leading airlines managed to finish the year with impressive on-time performance metrics.
Post-pandemic growth in demand coincided with commercial aviation capacity constrained by external factors that were mostly beyond the airlines’ control. Staffing shortages among the ranks of air traffic controllers, pilots, crew, and ground services made it difficult to satisfy a rapidly rebounding demand especially in the US and Europe. Supply chain shortages delayed the delivery of more modern and efficient aircraft. Safety and reliability concerns for certain engine models caused prolonged grounding of key parts of their existing fleets. War and political violence closed heavily trafficked airspaces. Volatile fuel prices and inflation put pressure on fares and margins. Despite all of that, the global carriers, as a group, turned in a composite OTP of 83%, down only slightly from last year’s 83.6%.
In addition to the global challenges, this year’s winner in the Global OTP Category, avianca (formerly Avianca), had to deal with a unique set of situational complexities.
avianca succeeded in reinventing itself following its emergence from bankruptcy in December 2021 with a plan to modernize its fleet, improve customer satisfaction, increase operational efficiency, and to help fill the void left by the cessation of operations by low-cost Columbian carrier Viva.
avianca adapted to fill the void by adding more seats to its A320 aircraft, expanding its network, and lowering prices.
When its bid to merge with Viva and rescue the ailing carrier was denied by the Columbian civil aviation authority, avianca adapted to fill the void by adding more seats to its A320 aircraft, expanding its network, and lowering prices.
The world’s second oldest airline has made itself new again.
The world’s second oldest airline has made itself new again with new aircraft, new branding, new destinations, and an expanded mission. avianca added 7 new A320-200neo aircraft to its fleet in 2023 in addition to the 8 put into service in 2022, with more than 80 A320-200neo deliveries scheduled over the next 7 years. 2023 also marked the airline’s return to profitability after showing significant losses in 2021 and 2022. Its Q3 financial statements indicated >30% growth in passengers, ASK, and RPK over the same period in 2022. avianca embodies the qualities necessary to thrive in challenging times – agility, adaptability, resilience, determination, and a clear strategic vision. Cirium offers avianca its heart-felt congratulations on an outstanding 2023 performance.
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