ISTAT Jetrader - Summer 2024 - 21

volumes in 2024, driven by job
growth and lower inflation.
RIGHT:
From left:
Moderator
Jep Thornton,
David Chaimovitz,
David Moreno and
Tyler Norman.
* Airlines have upgauged
domestic flying, increasing
average seats per flight.
* While mainline aircraft numbers
have increased since 2019,
regional aircraft numbers
have decreased.
* Despite challenges in aircraft
deliveries and production,
airlines have expanded
their workforce, with pilot
hiring increasing in 2023.
However, some airlines have
slowed hiring due to supply
chain issues.
THE AIR FREIGHT DEBATE:
From left: Moderator Mark Streeter, John Beekman, Meghan Montana, Paraic Quinn,
Jonathan Root and Radha Tilton.
Hurley emphasized JetBlue's
diverse offerings and cost advantage
over legacy carriers, enabling them
to compete effectively through asset
utilization and productivity driving.
Despite challenges, leisure traffic
remains strong post-COVID.
von Muehlen highlighted Alaska
Airlines' steady strategy and interest
in fleet expansion, considering options
like A330s or 787s to grow its network.
She discussed cargo as an additional
revenue source, utilizing freighters and
converting passenger aircraft.
The panel also discussed the
evolution of their business models,
expansion strategies and the
importance of product differentiation in
a competitive market.
U.S. Airlines and the
Economy in 2024
John P. Heimlich, vice president and
chief economist at Airlines for America,
started the second day of panels with
an overview of the airline industry. Key
points included the following:
* Despite strong economic
performance in other sectors, U.S.
airlines lag behind in profitability.
* The likelihood of a U.S.
recession within the next year
has decreased.
* Freight rail traffic has shown
improvement, indicating steady
economic activity.
* U.S. consumer sentiment has
improved, leading to increased
spending, particularly on travel.
* Remote work remains prevalent,
benefiting hybrid workers who
have more disposable income
for leisure activities.
* Air travel patterns indicate
a shift toward more leisureoriented
travel, with
weekends seeing increased
passenger volumes.
* U.S. airlines are projected
to reach record passenger
What Will the Freighter
Market Deliver in 2024
and Beyond?
Mike Yeomans, director of valuations
and consulting at IBA Group,
moderated the Freighter Panel, which
featured Paul Chase, chief commercial
officer at Air Transport Services Group;
Tom Crabtree, managing director
at Trade and Transport Group; Matt
Hoesley, chief commercial officer at
Altavair; Marc Iarchy, partner at World
Star Aviation; and David Parrott, vice
president of finance at UPS Airlines.
Chase highlighted the advantages
of both OEM and third-party
conversions for freighter aircraft,
emphasizing the flexibility of the
latter. Cost and customer experience
are key factors when selecting
conversion providers.
Crabtree discussed the cyclical
nature of the air cargo market, noting
that despite the overbuilt narrowbody
market due to COVID-19, air cargo
rates remain relatively high, driven by
e-commerce. He emphasized that most
air cargo carriers are financially stable.
Hoesley pointed out a surplus
of narrowbody passenger aircraft,
leading to higher leasing rates for
passenger jets compared to freighters.
* SUMMER 2024 * 21
ISTAT Jetrader - Summer 2024

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