Alliance Survey: 2023 Outlook
As 2022 drew to a close, the Fly Louie Alliance surveyed its membership base of charter operators to gauge current sentiment about the state of our industry, and their outlook on 2023. We received numerous responses across a broad range of operators and employees in a variety of roles from across the country. We’re pleased to share some key findings, and hope that Alliance members will draw inspiration and strength from seeing the responses of their industry peers.
Industry and Business Outlook
When it comes to the state of the industry and of their business, Alliance members remain largely optimistic in 2023. The survey revealed that operators are slightly less optimistic about the next 12 months in terms of the health of their business, with 43% of respondents feeling “very good” about 2023, a drop from 53% feeling “very good” about the prior 12 months of 2022.
90% of Alliance members feel good or very good about optimism for their business in 2023.
Interestingly, on a year-over-year basis, optimism about the overall health of the industry overall stayed relatively flat, with 38% feeling “very good” about prospects for 2023, versus 39% in 2022. Alliance members certainly have reason to remain optimistic: industry veterans believe that the U.S. business aviation market is on a trajectory to gain 5-10% over 2019 levels during 2023, highlighting its resiliency compared to the European market.
Key Challenges Ahead
We asked operators to rank a list of potential challenges according to their level of concern for each. We then tallied the number of respondents who gave each challenge the #1 or #2 spot (most concerning). The top result was pilot and crew shortages, which took the #1 or #2 spot 48% of the time. The rising costs of business was next, at 35%, followed by inflationary pressures on consumer behaviors.
The concern over pilot shortages is in line with recent reports, such as one by AINonline, predicting a continued global pilot shortage through the next decade. Sure enough, when asked where operators would invest incremental dollars in their business, 60% selected hiring, employee compensation, and incentives. New equipment and marketing took distant second and third places.
Key Priorities in 2023
Business growth is a key priority for our members in 2023. While 70% of respondents report that growing the number of planes they manage is a “very high priority,” only 42% expect direct acquisition of more aircraft to be a high priority in the near future. Increasing demand was another key priority, with more operators making increased retail demand a top priority (49%), over increased wholesale demand (23%).
Despite the “rising costs of doing business” being a top challenge for 2023, cost cutting did not come across as a key priority for the majority of respondents. Only 23% ranked cost cutting as a very high priority. That said, several Fly Louie Alliance members acknowledge in comments that the Alliance already enables them to meaningfully cut costs, particularly on fuel. As one respondent wrote, “Fly Louie is an incredible resource for the private aviation operator. Their fuel discounts make such an impression on our bottom line.”
Summary
The survey provided important insights into the pulse of the industry and of the key concerns and priorities for our Alliance members. We will continue to use this information to improve benefits and services offered to members of the Fly Louie Alliance. Responses highlighted the strength and value-add of our Alliance and reaffirmed the important work that we undertake at Fly Louie. When asked how likely it was that they would recommend Fly Louie to a friend, 85% of respondents rated the likelihood a score of 7 or higher out of 10. In the words of one operator, Fly Louie is seen as “a true partner that helps both increase revenue and decrease costs, all while providing valuable insights into the private aviation industry as a whole.”
