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In Summary – Airline Business Interruptions Threaten Margins

While airline profitability remains elusive and traveler numbers unpredictable, the industry must look at ways to mitigate airline business interruption risk.

Below is a summary. Additional details are outlined in the full article, published by Risk & Insurance. Read Full Article

The recent U.S. District Court ruling overturning the mask mandate is a clarion call that “America is officially open for business,” but it comes at a precarious time.

Key takeaways:

Pilot Shortages & Curtailed Schedules | Combined with high fuel prices, the drastic shortage of approximately 8,000-12,000 pilots has resulted in fewer destinations, and fewer flights.

Expect Delays for Summer Travel | As the U.S. emerges from COVID-19 lockdowns, air travel is increasing while the busy travel season kicks off.  Additional travelers means increased risk of delays as people inadvertently run afoul of security protocols, like the recent incident in Boston over Easter weekend – the most recent in a list of terminal evacuations.

Airline Business Interruption | Imagine if airports could offer airlines insurance against travel curtailment? Offset by passing the cost along to customers, this coverage could help airlines to reimburse travelers and offset other costs, providing peace of mind for all parties.

Read the full article on Risk & Insurance

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