Airlines

Powering the Evolution of Air Travel through Unique Data and Regulated Benchmarks

Skytra has been established by Airbus to strengthen the air travel industry with unique data to support strategic decisions and new regulated benchmarks which enable the industry to hedge revenue volatility. We were created in collaboration with the industry, for the benefit of the industry.

Airline CFOs and Treasury Managers can Hedge Volatile Revenues

Problem

With most revenue coming in 30 days before travel, highly volatile prices and exposure to external, unforeseen risks (Covid-19), Airlines understandable find it difficult to commit to long term strategic investments. Moreover, as a capital intensive business which can only hedge inputs, the risk of one sided hedge moving against the firm is greater. Long term capital commitments.

Solution

The Skytra Price Indices (regulated benchmarks) measure the cost of travel in the major travel markets around the world every day. The indices provide the reference price to enable risk transfer between buyer and sellers of air travel. Speak with us regarding hedge accounting and IFRS9.

Benefit

The Skytra Price Indices (regulated benchmarks) are measured in $/RPK, which is the price received for delivering 1 passenger 1 kilometre.

Hedging costs and revenues can better protect EBIT margins, strengthen your balance sheet, and promote a positive credit cycle which could enable the long term strategic investments required to achieve environmental emission targets and fleet upgrades.

Access Embry Riddle Aeronautical University’s white paper and case study on revenue hedging here.

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Airline Corporate Sales Managers can Simplify Air Travel Contracting

Problem

Air travel contracting has always been a complex business. The inability to contract at a regional level results in inefficient and protracted negotiations conducted by origin and destination, which increases the complexity both in contracting and also in contract performance measurement. There is also little transparency in pricing, leading to discounts which offer very little evidence of any advantage having been delivered to the customer. How does the Airline corporate sales team show value in this environment?

Solution

Regulated benchmarks can be used as the reference price for air travel supply contracts. Enabling negotiations at regional level rather than by letter class and O&D, dramatically increasing transparency and simultaneously reducing time and offering the possibility to contract with more customers.

Benefit

A regulated benchmark acts as a universal language when negotiating contracts. This enables better-informed decisions and faster, more efficient contracting, ultimately arming the corporate sales teams with the tools needed to meet targets and negotiate contracts efficiently.

Our Data

We own the world’s biggest air ticket database, curating billions of daily data points, enabling us to gauge a clear view of past, present and future pricing, revenues and volumes of air travel globally from the individual seat upwards. From our database we have developed two key product lines to empower all participants of the air travel eco-system.

Skytra Price Indices ($/RPK): We have developed six benchmarks measuring the daily price of air travel globally. The benchmarks are regulated by the UK FCA and permit, for the first time ever, a regulated daily reference price for air travel.

For more information on the official reference price for air travel and how to hedge your revenue risk, please complete the form below and one of our team will be in touch.

Request Data

For more information on accessing the Skytra Price Indices, please fill in the form opposite.

Alternatively, you can call us on: +44 (0) 20 8059 7700

For media enquiries please contact emma.mackenzie@skytra.com

Skytra Price Indices
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SKYTRA Limited is a regulated benchmark administrator under the UK Financial Conduct Authority (FCA), with FRN 923418. Skytra Limited is a wholly-owned subsidiary of Airbus SE, and is a company incorporated in England and Wales under registered number 11984828. VAT number: 335130145 and LEI 254900Y389SLBTPDX711. The content on this website is for information purposes only. None of the information concerning the services or products described constitutes advice or a recommendation of any product or service. To the extent that the information provided constitutes a financial promotion as defined by section 21 of the Financial Services and Markets Act 2000, it is only directed at persons who qualify as Professional clients as classified by MiFID II. Calls and electronic communications may be recorded for monitoring, regulatory and training purposes.
Skytra is an Airbus company facilitating financial risk transfer for the air travel industry