Oliver Wyman Launches Aviation Demand Recovery Tool Using IATA data
Jul 27, 2020
New York, Jul 27, 2020….Global consulting firm Oliver Wyman today announced the release of a new short-term forecasting tool using data from the International Air Transport Association (IATA). Oliver Wyman analysis of IATA Direct Data Solutions (DDS) data will provide new insights into how near-term demand for air travel may recover from the COVID-19 pandemic.
Aviation has been particularly hard hit by the COVID-19 crisis, with bookings worldwide declining 90 percent year-over-year worldwide and airline capacity down 70-80 percent per IATA Economics. IATA expects airlines to suffer a revenue decline of $419 billion globally in 2020. The uncertainty surrounding the virus and its broader effects has created a uniquely challenging environment for airlines with a highly uncertain outlook for passenger demand.
The Oliver Wyman tool, powered by IATA Direct Data Solutions (DDS) data, will be available to IATA members only. It will help airlines make critical decisions on relaunching their route networks as the pandemic evolves with clear insight on short-term demand trends. The tool incorporates Oliver Wyman’s COVID-19 Pandemic Navigator forecasts which has multiple inputs including: virus progression, travel restrictions activity, and economics insights from a six-month forecast for domestic and international net ticketing demand by travel date. This will enable short-term domestic and international airline passenger demand recovery for more than 67 countries representing over 95 percent of the global market.
Tom Stalnaker, global head of aviation for Oliver Wyman, states: “Capacity planning for airlines and getting customers back to travel has been extremely challenging in a turbulent demand environment. IATA and Oliver Wyman have collaborated to develop a new industry-leading solution that will provide predictive capability using advanced analytics for airlines in these uncertain times.”
“IATA is pleased to provide our gold-standard DDS data to help airlines navigate this crisis with Oliver Wyman’s new forecast offering. This complements the wide-range of forecasting solutions which includes short-term aviation financial forecasts, long-term demand forecasts, and ad-hoc market and demand forecasting studies,’’ said Charles de Gheldere, IATA’s Director, Aviation Data.
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With offices in 60 cities across 29 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 5,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a business of Marsh & McLennan Companies [NYSE: MMC]. For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.