Daily Forward View of Revenue is key for Airlines’ recovery

By Hélène Dubos | Conztanz News

Apr 24

Conztanz is part of the travel family, Since the beginning of the crisis, as others, we wish to contribute to the recovery of the Airline industry by doing what we do best : gathering and analyzing data. Our research leads us to the below outputs. 

AIRLINES SHOULD ADAPT THEIR DAILY CASH FLOW FOLLOW-UP

 The COVID19 crisis strongly hit the airline industry, destabilizing the business and throwing airlines to a state of great insecurity and uncertainty for an indefinite period of time. Massive cancellations of flights threatening airlines' cash flow put their survival at high risk, either in the immediate future, or in the months to come (when vouchers will be issued as refunds).

More than ever, Airlines have to manage uncertainty.

Remaining confirmed bookings’ revenue stay unsecured as long as the crisis is not over. Operations will have to be resumed "one piece at a time" - tough decisions to be taken without any short/medium term visibility

 These new parameters require an immediate agility and intelligence gain. To properly manage their way out of the crisis, airlines must redefine the way they track revenue.  More than ever, they need to get a clear vision of their performances on a daily basis  integrating the production, to the forefront of these dashboard, of 3 specific figures :

  • Revenue from tickets issued and paid in classical “form of payment” (Credit Card, cash) which actually  increases the cash flow
  • Revenue from tickets paid with vouchers which cannot be counted as revenue as such but more as a debt clearance. The stock of issued vouchers represents a debt that has become essential to monitor as it will impact operations without generating new cash. 
  • Revenue coming from non-issued tickets. As before the crisis, the risk of a cancellation/non-payment is higher, in addition, even if confirmed the booking might be paid with a voucher. 

Combining our experts in Airline Business and Airlines’ system and data, we have designed a solution that enables airlines to quickly get those information and help airlines in their post-crisis management.


Discover our solution "Analytics for Restart"

To bring our contribution to the recovery, this solution is proposed free of charge  for the first months.