Ask Skift: What Are the Biggest Challenges For the Airline Industry?

The Skift Aviation Forum this week will feature several airline industry executives discussing the sector's future and its most pressing issues. So it's a good time to ask: What are the biggest challenges for the airline industry?

We posed the question to our answer engine Ask Skift 2.0. The AI chatbot used information that’s appeared in our past news coverage, and we also did additional reporting on the matter.

The airline industry is currently navigating a complex set of challenges, even as it shows significant recovery from the pandemic. Here are some of the key challenges faced by the industry:

Operational Cost Increases: Ultra-low-cost carriers such as Spirit and Frontier are grappling with rising operational costs. This includes increased expenses related to labor and other operational inputs, which have historically been areas where low-cost carriers enjoyed a competitive edge. The erosion of these cost advantages is challenging their profitability and business models.

Intensified Competition: There is heightened competition from legacy carriers that are now offering competitive basic economy options. This has led to increased pressure on ultra-low-cost carriers, as their market share is being threatened by these tra