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In this article, we are going to take a look at the 10 most harmful airlines in the world. If you need to skip our discussion of the airline industry, you can skip ahead to the five most harmful airlines in the world.
Air travel is essential for the progress of the global economy because it facilitates connectivity. It enables the smooth flow of goods, technology, capital, people, and concepts around the world to aid the business cycle. However, the outbreak of the COVID-19 pandemic led to an abrupt halt to air travel. This disruption had a significant effect on airline operations globally, resulting in an unprecedented loss of $140 billion for the industry in 2020.
In 2023, the air transport sector consistently experienced a very broad recovery from the COVID-19 crisis. Industry-wide profits for 2023 are expected to reach $896 billion, surpassing the International Air Transport Association’s (IATA) June forecast of $93 billion. Earnings are also $9. 8 billion more than in the previous forecast. This increase in profits can be explained through a significant increase in passenger activity during the year. Passenger traffic registered a 40% year-on-year increase in September and was successful. 92. 9% of pre-pandemic degrees. In addition, with the exception of Asia-Pacific, all regions of the world are expected to reach or exceed 2019 passenger traffic levels in 2023. Conversely, the shipping segment of the airline industry has faced a slowdown this year, with shipment tonnes per kilometre being lower. That 2022. La main explanation for this is the slowdown in world trade. However, IATA forecasts a 4. 54% expansion in this segment next year.
Even with such a gigantic and immediate change, the airline industry faces its own demanding situations. The most significant of these challenging situations is the industry’s vulnerability to external factors. These problems come with the economic slowdown, challenging geopolitical situations, emerging oil prices, supply chain problems, and regulatory pressures. In addition, aviation security is one of the main considerations affecting airline operations. A high-profile air fate reversal can gently tarnish an airline’s reputation, leading to a drop in profits as passengers transfer to competing airlines. Hence, notable corporations such as American Airlines Group Inc. (NASDAQ: AAL), United Airlines Holdings, Inc. (NASDAQ: UAL) and Delta Air Lines, Inc. (NYSE: DAL) spend millions to make sure all the protection criteria are met. . and points to one of the safest airlines in the world. You can also check out the top of 20 sensible airlines in the world in 2023 here.
Here’s what Patient Capital Management had to say about Delta Air Lines, Inc. (NYSE:D AL) in its Q3 2023 letter to investors:
“Airlines have returned to their multiple lows as rising oil costs have put pressure on costs. Historically, airlines have passed those costs on to their customers. We believe Delta Air Lines, Inc. (NYSE: DAL) is a premium logo that is valued because its economics are not sustainable. With returns on equity soaring around 15%, significant flexible cash flow generation, fair capital allocation, and long-term earnings consistent with consistent mid-double-digit percentage expansion, we, the company, are particularly undervalued. .
Delta Air Lines Inc. (DAL) reversed its finish in the third quarter, falling 24% from its July highs. Airlines in general have been affected by new commodity charges, which result in an increase in the charge per available seat mile (CASM). Historically, airlines have passed on emerging fuel charges to their customers with a delay. We view Delta as a premium global customer logo that is largely misunderstood in the market. The market remains consistent with the outlook for airlines as a cyclical and bankruptcy-prone sector. A better supply and demand situation, scope of control, and greater business mix make Delta a more resilient company. Its loyalty program with American Express is a strong and developing profit source with a refund of $6. 5 billion this year with a goal of reaching $10 billion by contract completion in 2028. The service’s premium benefits and auxiliary products deserve to generate 65-70%. billing. generally in one or two years. The company is expected to continue generating consistent returns on capital for approximately 15 years. As the market begins to accept this, we, the company, will continue to be rewarded. On top of that, the flow of loose money is expected to increase, generating a cumulative total of ~$11 billion between 2023-25, or part of its existing market cap. As the company pays down debt while widening the division’s margin and likely resuming consistent percentage buybacks, the stock will continue to rise.
The last few decades have seen significant advances in aircraft engineering, which have rendered aviation the safest mode of travel. In 2022, IATA reported 1.21 accidents per million sectors. This is an improvement of 48% as compared to 2013, when 2.31 accidents per million sectors were reported. While most of the airlines remain safe, there are some which have terrible safety records. With this context in mind, let’s begin our list of the 10 most dangerous airlines in 2023.
A single-aisle Airbus aircraft flies over a major city, showcasing the airline’s air services.
Our Methodology
To shortlist the 10 most harmful airlines globally, we searched the Aviation Safety Network and Airline Ratings databases. Airline Ratings is a platform that evaluates more than 350 airlines worldwide based on various signs on a 7-star scale. Our assessment took into account the number of fatal injuries over the past 10 years, incident ratings, and audit prestige of shortlisted airlines. Fatal injuries include only those injuries that resulted in the death of the crew and passengers on board. The incident rating takes into account the serious ones. incidents caused by pilot error. Meanwhile, audits considered as scoring come with the IOSA audit, the ICAO national audit, and the EU and FAA bans, indicating an airline’s commitment to the protection rules. The 10 most damaging airlines in the world have been ranked in descending order of their scores.
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Rating: 1 out of 7 stars
Number of fatalities in the last 10 years: 0
Audit Status: Did not pass IOSA audit and blacklisted in the EU
Blue Wing is a regional airline founded in Suriname. Many safety considerations have been raised with this airline since its launch in 2002. Although there have been no fatal injuries in the last decade, the airline’s record is not without its flaws. Blue Wing involved in fatal air injuries in 2008 and 2010 , which claimed the lives of 19 and eight people on board, respectively. Aside from that, Blue Wing Airlines has been involved in some serious non-fatal injuries since the start of its operations. Furthermore, it has not passed any audit and is blacklisted by the EU for the second time in 2010.
Rating: 1 out of 7 stars
Number of fatalities in the last 10 years: 0
Audit Status: Did not pass IOSA audit
Air Blue is a Pakistan-based airline with a poor protection record. The airline’s most talked-about twist of fate occurred in 2010, when an Airbus 321-200 crashed into the hills near Islamabad, killing another 146 people on board. , several cases of engine problems, hydraulic failures and runway overflows have been reported on the airline’s flights since 2012. Air Blue did not meet the minimum protection needs to pass the IOSA audit.
Rating: 1 out of 7 stars
Number of fatalities in the last 10 years: 1
Audit status: IOSA audit failed
Established in 2003, this Indonesian airline initially operated domestic and international flights to three destinations. The airline has experienced several incidents leading to aircraft damage, injuries to both crew and passengers, and fatalities. In 2021, the airline experienced a fatal crash involving one of its Boeing 737-500 shortly after take-off from Jakarta, resulting in the loss of all 62 passengers and crew members. Due to these safety issues, the airline has faced bans and has been unable to obtain international certification.
Rating: 1 out of 7 stars
Number of fatalities in the last 10 years: 1
Audit Status: IOSA Audit Successful
SCAT, an airline founded in Kazakhstan, began operations in 1997. Lately it operates flights to major cities in Kazakhstan and neighboring countries. Despite the good fortune of the IOSA audit, there are considerations about the airline’s safety record. Over the past decade, shutdown problems, landing problems, faulty nose gear, and even flat tires have been reported. The airline was blacklisted by the EU due to a lack of acceptance in the country’s regulatory process. SCAT ranks seventh on our list of the 10 most harmful airlines in the world.
Rating: 1 out of 7 stars
Number of fatalities in the last 10 years: 1
Audit Status: IOSA Audit Successful
The Algeria-based airline’s safety record has raised concerns in recent years. The airline suffered its worst turnaround of air fate in 2014, resulting in the deaths of another 116 people on board. The investigation found that the twist of fate was due to pilot error and insufficient training by the team. Air Algerie’s use of obsolete aircraft and poor maintenance practices added to the protection considerations. Despite those issues, the airline passed the IOSA audit and was removed from the EU’s list of banned airlines. In addition, the airline plans to upgrade its fleet by adding new Boeing and Airmax aircraft, which could provide assistance service only.
Among the world’s leading airlines are American Airlines Group Inc. (NASDAQ: AAL), United Airlines Holdings, Inc. (NASDAQ: UAL) and Delta Air Lines, Inc. (NYSE: DAL).
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Disclosure: None. The 10 Most Dangerous Airlines in the World are published on Insider Monkey.