1、Understanding the pandemics impact on the aviation value chainDecember 2022ContentsINTRODUCTION 3EXECUTIVE SUMMARY 4TAKING A STEP BACK:PRE-PANDEMIC VALUE CHAIN PERFORMANCE 5CHANGES DURING THE PANDEMIC 6PERFORMANCE AND RECOVERY BY SECTOR 7 Airlines 7 Airports and air navigation service providers 11 O

2、riginal equipment manufacturers and lessors 12 Catering,ground handling,and maintenance,repair and overhaul 13 Global distribution systems Travel tech 14 Cargo airlines and freight forwarders 15VALUE CHAIN DYNAMICS 16EXPANDING THE VALUE CREATED BY ALL VALUE CHAIN PARTICIPANTS 18CONCLUSION 21ANNEX A:

3、DEFINITIONS 22ANNEX B:EXAMPLE ROIC CALCULATION 22ANNEX C:WACC ESTIMATES 23ANNEX D:COMPANIES INCLUDED IN THE ANALYSIS 24This work is independent,reflects the views of IATA and McKinsey,and has not been commissioned by any business,government,or other institution.3Understanding the pandemics impact on

4、 the aviation value chain IntroductionSince 2005,IATA and McKinsey&Company have jointly looked at value creation across the aviation value chain.This analysis examines the entire value chain,covering aircraft and engine original equipment manufacturers(OEMs);lessors;airports;air navigation service p

5、roviders(ANSPs);ground handlers;maintenance,repair,and overhaul(MRO)providers;catering companies;airlines;global distribution systems(GDSs);and freight forwarders.The value chain analysis presented here excludes upstream value creation by oil companies.Given the differentiated nature of oil companie

6、s,profits attributed to jet fuel production alone are not transparent.Hence,this has been excluded.While acknowledging the human toll the COVID-19 pandemic has exacted,the focus here is on economic value creation,defined as the difference between the return on invested capital(ROIC)and the weighted