Amazon disrupted how we buy products. Uber disrupted how we move on the ground. But, the sky still waits for its evolution. Airlines MUST become technology companies to improve their customer experience and efficiency.
Many airlines in the past struggled with profitability. Since 2009 however, accelerating passenger growth and low fuel costs brought about a new golden age in the commercial aviation industry. Unprecedented margins grew, reaching 20 USD per passenger in 2017 in the US.
However, this success hid serious flaws in aviation business practices. Recent upward fluctuations in fuel cost are bringing these flaws to light and are putting airline margins under serious stress.
Compounding these business obstacles are environmental challenges and demands. Flights produced 859 million tonnes of CO2 in 2017, which is about 2% of all human-induced CO2 emissions, making sustainability a major initiative for airlines.
Driven by emerging markets such as Latin America and Asia, IATA forecasts air travel growth doubling to 8 billion passengers by 2035, but strives to cap current CO2 emissions. At the current rate without action, airlines will account for 27% of all human-induced CO2 emissions by 2050.
IATA aims to:
These environmental demands and increasing fuel prices necessitate the investment in lower CO2 emitting aircraft (each new generation of aircraft is on average 20% more fuel efficient than the model it replaces), but airlines need to make efficiency gains to finance these investments. Embracing digital demand strategies, direct customer relations and organizational innovation hold the promise to bring these efficiency gains.
In 2017, 81.5% of seats were sold globally. Our goal is to maximize global load factor by increasing the demand for the 18.5% of unsold seats. If airlines can better manage their demand, they can increase load factors and eliminate waste by getting more passengers to fly on fewer planes.
It’s Yieldr’s purpose to change the future of air travel by enabling airlines to establish a direct relationship with their passengers through predictive analytics software. Not only can airlines optimize revenues and profits, by harnessing such insights airlines can come to better understand their demand and use their data to predict customer needs and increase load factors.
We have big ambitions for the coming years. We want to manage the demand of 5 billion travelers by 2035. Yieldr invites you to be part of this next step in making the airline industry efficient, profitable and sustainable.
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Yieldr is made up of engineers, data scientists and business go-getters. Our agile talent comes from around the world, featuring 20 different nationalities. Our global mindset helps us tackle complex business challenges with unique approaches. We believe in the statement that culture eats strategy for breakfast. At Yieldr, our people come first! You can learn about our values on our careers page.