News Letter – Feb 2023

Table of Contents

Travel hotel and airport advice for airline crew and passengers

Industry Shape and Trends

According to IATA, passenger air transport measured as revenue passenger kilometre, was down 90% year on year in April 2020. Air freight was down nearly 30% year on year. COVID-19 removed more than 1 billion passengers for the entire year 2020. COVID has had a greater impact than any other crisis in the airline industry’s history. Bloomberg stated that approximately USD$200 billion of market value had been lost in the US aerospace industry alone. As a result, Boeing and Airbus slashed their production forecasts up to 50%.

EMR, Market Researchers stated that low cargo rates and unprofitable cargo businesses have caused many airlines to reduce or abandon cargo fleets over the least ten years, however, during COVID, cargo proved to be a lifeline for the industry. Prior to the pandemic, cargo accounted for about 12% of the sector’s total revenue, however, this figure tripled during the pandemic.

The airline industry is now on the path to recovery and experiencing a period of tremendous growth and transformation, with the introduction of the latest aircraft models from industry giants such as Airbus, Boeing, and Embraer leading to an unprecedented demand for highly-skilled professionals to fill a wide range of new job openings. This has opened up a wealth of opportunities for those looking for rewarding careers in this exciting and ever-changing industry. The aviation industry also continues to innovate with the introduction of advanced technologies such as artificial intelligence, machine learning, and automation.

A report released by Airbus forecasts demand for passenger traffic will grow annually by 3.6% over the next 20 years, demanding 39,490 new passenger and freighter aircraft to satisfy the growth.

EMR also released data indicating that the General Aviation market, comprising that of helicopters, turboprops, business jets and other aircraft types not classed as scheduled airline services, was valued at approximately USD$20.5 billion in 2021 and expected forecast growth between 2023 and 2028 of 3.2%, estimating a value of USD$24.8 billion in 2027. They key market drivers included increased spending on air travel for medical purposes, charter and VIP operations as well as increasing use of air transport for tourism and recreation. The major regions for general aviation are North America, Latin America, the Middle East, Africa, Europe and Asia Pacific. The key industry players include Airbus, Boeing, bombardier, Dassault Aviation and Embraer.

IATA stated the recent estimates suggest demand for air transport will increase on average, by 4.3% per annum over the next 20 years. If this growth path is achieved by 2036, the air transport industry will contribute 15.5 million in direct jobs and USD$1.5 trillion of GDP to the world economy, which could increase to 97.8 million jobs and USD$5.7 trillion in GDP once the impacts of global tourism are taken into account. IATA also indicate that it is expected that no fewer than 200,000 flights per day will takeoff and land worldwide, a near doubling of passenger and cargo numbers by 2036, supporting the forecast demand for pilots, engineers, air traffic controllers and other aviation related jobs.

2 heavy jets doing a test flight before delivery

As such, those looking to enter the aviation industry can be sure to find a wide range of exciting and rewarding job opportunities. Furthermore, those already employed in the industry can benefit from the latest advancements in technology, ensuring that they remain at the forefront of the industry and can take advantage of the many opportunities available. With the increasing demand for aviation professionals, businesses are turning to specialized training programs to ensure their employees have the necessary skills and knowledge to succeed. Additionally, universities are beginning to offer courses and degree programs for those interested in pursuing a career in aviation. By taking advantage of these opportunities, aspiring aviation professionals can gain the knowledge and skills necessary to succeed in the ever-evolving industry. For those looking to break into the aviation industry, it is important to understand the requirements for success. It is also essential to stay up to date on the latest industry trends and developments, as well as understanding the regulations and standards that must be adhered to. With the right qualifications, experience and training, those entering the aviation industry can be sure to find rewarding and lucrative job opportunities.

You can rely on 3Crew to offer helpful advice and information on the latest trends and you can join in on the fun with the monthly aviation joke and photo of the month, submitted by readers like you.

Aircraft Orders and Deliveries

A321 pilot job interview preparation

Airbus Orders to 31st December 2022

A220 – 53

A319/320/321 neo – 770

A330-900 – -65 (due cancellations)

A350F – 24

A350-900/1000 – -14 (due cancellations)

Airbus Deliveries to 31st December 2022

A220 – 105

A319/320/321 neo – 514

A330 – 32

A350 – 60

Boeing 737 in flight

Boeing Orders to 31st December 2022

B737 – 697

B767 – 31

B777 – 68

B787 – 139

Boeing Deliveries to 31st December 2022

B737 – 386

B747-8F – 5

B767 – 33

B777 – 24

B787 – 31

Embraer E-Jets and ERJ pilot jobs in Asia USA and Europe

Embraer Orders to end of 2nd Quarter 2022 (June 30 2022)

E170/175/190/195 – 2000

Embraer Deliveries to end of 2nd Quarter 2022 (June 30 2022)

E170/175/190/195 – 1688

Financial Tips From EJM

EJM Financial Services Logo

2023 is likely to see easing inflation pressures, central banks moving to get off the brakes and economic growth weakening but proving stronger than feared. This along with improved valuations should make for better returns in 2023. But there are likely to be bumps on the way – particularly regarding recession risks and raising the US debt ceiling around mid year – & this could involve a retest of 2022 lows or new lows in shares before the upswing resumes.

Global Share Outlook

Global shares are expected to return around 7%. The post mid-term election year normally results in above average gains in US shares, but US shares are likely to remain a relative underperformer compared to non-US shares reflecting still higher price to earnings multiples (17.5 times forward earnings in the US versus 12 times forward earnings for non-US shares). The $US is also likely to weaken which should benefit emerging and Asian shares.

Australian Market Outlook

Australian shares are likely to outperform again, helped by stronger economic growth than in other developed countries and ultimately stronger growth in China supporting commodity prices and as investors continue to like the grossed-up dividend yield of around 5.5%. Expect the ASX 200 to end 2023 at around 7,600.

Bonds are likely to provide returns around running yield or a bit more, as inflation slows and central banks become less hawkish.

Unlisted commercial property and infrastructure are expected to see slower returns, reflecting the lagged impact of weaker share markets and higher bond yields (on valuations).

Australian home prices are likely to fall another 9% or so as rate hikes continue to impact, resulting in a top to bottom fall of 15-20%, but with prices expected to bottom around the September quarter, ahead of gains late in the year as the RBA moves toward rate cuts.

Cash and bank deposits are expected to provide returns of around 3%, reflecting the back up in interest rates through 2022.

A rising trend in the $A is likely over the next 12 months, reflecting a downtrend in the now overvalued $US, the Fed moving to cut rates and solid commodity prices helped by stronger Chinese growth.

  • The above Financial Outlook was kindly provided by Senior Financial Adviser Manny Mezzasalma CFP. A Founder & Chief Growth Officer at EJM Financial Services. Any advice is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters.

Joke of the Month

What noise does a 747 make when it bounces?

“Boeing, Boeing, Boeing!”

Photo of the Month

Email your photos to admin@3crew.com.au to be featured in the next newsletter for ‘Photo of the Month’


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