The COVID-19 pandemic forced lockdowns and border closures, which subsequently curtailed global travel. Industry revenue in fiscal year (FY) 2020–2021 amounted to $328 billion—the nominal equivalent to revenue generated in FY 2000–2001. Due to grounded aircraft and cancelled flights, the reasons for the shift in passenger behavior, government restrictions, and economic downturn go beyond the carbon impact in the near term.
Fossil fuel derivatives remain the most volatile cost in the operations of airlines and airports. In addition, maintenance costs account for a substantial portion of operating expenses (OPEX). Incorporating sustainable and energy-efficient technologies to power aircraft, airports, and ground support equipment (GSE) can reduce OPEX in the short, medium, and long terms. Technological maturity and widespread adoption will reduce cost implications due to economies of scale.
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