Like any business, airline management is expected to manage the airline prudently through a downturn to minimise the impact on profitability and shareholder returns.
Given the inevitability of a downturn in the industry – whether it’s this year or next – that expectation becomes more telling.
Generally speaking, LCCs should be better placed in times of heightened price sensitivity, as their lower cost base should give them an edge. But that alone is not enough.
CAPA offers here some key tactics that LCC management can deploy when things get tough. Many of them are common sense, but in tough times the sense may not be so common.