Replatforming a Fragmented Department Landscape Onto One Governed System

The Challenge

Millions of families around the world count on Apollo to generate investment income and retirement savings. We invest in private and public markets and across the full spectrum of Credit, Equity and Real Assets to seek excess returns for our clients.

Introduction

The aviation industry is enjoying a welcome boost from resurgent postpandemic air travel demand. But there remain potential storms to navigate. This report analyzes the industry’s current trajectory while pointing toward possible future landing spots.

How might economic trends and geopolitical events shape aviation? What product offerings are most likely to find favor with air travelers? How can airlines adjust their business models, plan their schedules, and calibrate their fleets in ways that achieve their commercial and operational goals?

During a moment that combines great promise with great uncertainty, it’s crucial for aviation stakeholders to ground their decisions in solid facts, careful analysis, and hard-earned insights.

After some turbulent years, the airline sector is on a recent upswing. In 2023 and 2024, nearly half the airlines we track created positive economic value, and the sector as a whole came close to earning its cost of capital. But the industry remains fragile vulnerable to economic uncertainty, geopolitical tensions, and potential imbalances between capacity and demand. Future profitability will depend on airlines’ ability to navigate external pressures while sharpening internal performance. Improving on-time reliability, ancillary revenue generation, and organisational health could be avenues for airlines to create stronger returns.