- Total value of world’s top 50 most valuable airline brands has declined by a third as sector significantly impacted by COVID-19 pandemic
- Delta, American Airlines, and United Airlines have retained top three spots in Brand Finance Airlines 50 2021 ranking
- Saudia is highest ranked new entrant in 39th; two other new entrants: Jetstar and Avianca
- Flag carrier brands have benefitted from increasing reputation and trust over last 12 months; challenge remains to retain and translate this equity into growth as sector starts long path to recovery
- Aeroflot flies high as sector’s strongest brand with AAA brand strength rating
View the full Brand Finance Airlines 50 2021 report here
The total value of the world’s top 50 most valuable airline brands has declined by a third, decreasing from US$108.6 billion in 2020 to US$72.9 billion in 2021, according to the latest Brand Finance Airlines 50 2021 report.
The airline sector is one of the most severely affected by the COVID-19 pandemic, with international travel at a near complete standstill since the beginning of 2020. With airlines forced to ground a significant amount of their fleets and cut flights down to worryingly low numbers, brands are grappling with depleting cash reserves and a dependence on government or state support.
The International Air Transport Association (IATA) has forecast that the industry will not make a full recovery to pre-pandemic levels until 2023 or 2024. According to Brand Finance’s analysis, low-cost airlines are predicted to make a quicker recovery than their full-service counterparts. Both, however, will be relying upon the continued speedy and successful rollout of vaccinations globally, as well as the effective control of new variants emerging. Business travel is expected to stagnate, while leisure travel is likely to be the main driver behind recovery across the industry.
Savio D’Souza, Valuation Director, Brand Finance, commented:
“As predicted, airline brands have had a turbulent ride since the outbreak of the pandemic, with brand values plummeting across the board. With recovery closely tied to vaccination rates, we will likely witness short-haul flights and airline carriers rebound quicker compared to long-haul. Airlines that successfully manage to fly through the economic storm of the pandemic and protect their brands, are likely to be more resilient and perform better as we return to normality.”
No movement in top three
American airline brands, Delta, American Airlines, and United Airlines have retained the top three spots in the Brand Finance Airlines 50 2021 ranking. With all three brands exposed to the same business conditions throughout the pandemic in the US, their respective brand values have taken a similar hit, losing between 38% and 40%. Domestic travel in the US has already begun to steadily recover and over the summer months is expected to strengthen further, therefore brand values in the coming year should improve as a result.
The sector’s most valuable brand, Delta (brand value US$5.8 billion) has ensured that employees and customers have remained the top priority throughout the pandemic and has been recognised as a leading brand for customer service, communications, and flexibility – the latter of which is vital in the uncertain COVID environment.
Tags: Brand Finance
