The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Treasury

Skytra ticket price indices pave way for air travel derivatives

UK regulatory approval for a new set of benchmarks could help a shattered industry emerge from the pandemic

travel-5078898 960px.jpg
Gerhard G via Pixabay

When Airbus business development staffers Elise Weber and Matt Tringham started work on an airline ticket pricing database back in 2017, the idea of a pandemic that would bring global airline travel almost to a halt was mere theory. Even when they formally launched the database in January 2020 as Skytra, an Airbus subsidiary, coronavirus was yet to have the world in its grip.

But 12 months later, approval by the UK’s Financial Conduct Authority of Skytra as the official provider of the world’s first air travel price indices could revolutionize the way in which airlines emerge from the Covid-19 crisis by giving them a powerful tool with which to hedge revenue volatility.

Regulation has made banks more resilient since the global financial crisis, but coronavirus exposed the vulnerability of the corporate sector to demand and supply shocks. Skytra’s offering could help airlines manage their way out of it.

Help of any sort is sorely needed. Airlines have been ravaged by the pandemic. According to a November 2020 report by the International Air Transport Association (IATA), spending on global air transport is likely to have fallen more than 60% in 2020, to about $340 billion, and is still likely to be below $500 billion in 2021.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree