Skytra is a wholly owned subsidiary of Airbus, established in London, in May 2019 to create the financial infrastructure necessary for the air travel industry to help risk manage its revenue volatility.
The air travel industry generates $1 trillion pa in revenue but almost 90% of this revenue is booked less than 90 days before travel*. The industry’s fixed costs combined with unpredictable revenues creates a cash flow and profit margin challenge. Whilst many airlines are sophisticated hedgers of jet fuel, interest rates and FX the financial instruments needed to help manage their revenue risk have not been available.
We have worked in collaboration with the aviation industry for the past two years, and crunched over 2 peta bytes of air travel ticket data, to create Skytra Price Indices. These indices represent the ticket price revenue generated across major geographical markets worldwide.
Financial futures and options contracts based on these indices will be tradable OTC initially. These financial products will enable the industry for the first time to transfer revenue related risks with the possibility of increasing price certainty, reducing margin volatility and helping to support the whole air travel value chain.
We understand the air travel industry and its challenges and have developed our products and services to be directly aligned with the industry’s needs.
We have sourced data covering 80% of worldwide tickets flown by value and have developed our indices in collaboration with the air travel industry over a period of two years.
*Sources: IATA, ACI, Skytra proprietary analysi, pre-covid19 statistics.
The indices measure the average price of transporting one passenger one kilometre in a given region. Skytra aims to launch with six regional and interregional indices. The unit of value of the indices is US dollar per Revenue Passenger Kilometre ($/RPK), a key industry metric for air travel demand. Skytra’s database covers more than 80% of ticketed kilometres flown by value.
Using data that captures real prices and tickets issued for air travel, we cover about 40% of the world market in terms of transactions and 80% by value.
For more information on accessing our indices, or for any other enquires please request a call back.
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Phone: +44 (0) 20 8059 7700