Nordic NDC
David Rutnam 26th May 2021 International RPK growth versus the same month in 2019 2021 H1 will be weaker than expected in December There is also a risk to H2 from policy response to new virus variants Global RPKs, billions per quarter
2500 Scenario 1: Travel restrictions lifted in developed economies once vulnerable vaccinated 2000 2021 as a % Scenario 2: Governments more of 2019 cautious to relax travel restrictions 51% 1500 Dec forecast 38% 1000
33% Billions Billions quarter per
500
0 2019Q1 2019Q3 2020Q1 2020Q3 2021Q1 2021Q3 Source: IATA Economics The world has changed
▪ Travel demand has fallen dramatically ▪ The industry is losing $billions, requiring government support in many cases ▪ Contactless distribution and travel has become more desirable ▪ Airlines are committed to accelerate digitalization ▪ New IT entrants see opportunities in the travel sector whilst incumbents need to adapt … the journey has accelerated
Statement here Benefits realized with NDC What live agents report:
Fare Brands and bundles
Fare Attributes and rules in easier to understand format
Product information such as traveler entitlements
Inflight amenities
Images such as onboard layout
Speedy responses
Access to Ancillaries NDC Airlines across all continents
Aegean Airlines Finnair Aeroflot Georgian Airways Cathay Pacific Airways Air Austral Hahn Air Lines China Airlines Air France Iberia China Eastern Airlines Corporation Ltd Air SERBIA KLM Royal Dutch Airlines China Southern Airlines Aircompany Armenia Lufthansa EVA Airways Corporation APG AIRLINES Norwegian Air Shuttle ASA Hainan Airlines Holding Co., Ltd. Austrian Airlines Olympic Air Shandong Airlines Co., LTD BELAVIA - Belarusian Pegasus Airlines Shenzhen Airlines Airlines S7 Airlines Sichuan Airlines British Airways SunExpress Spring Airlines Co,.LTD AVIANCA Brussels Airlines Swiss International Air Lines Xiamen Airlines AIR CANADA Condor Flugdienst GmbH Virgin Atlantic Airways American Airlines Delta Air Lines Inc. Eastern Airlines Southwest Airlines Spirit Airlines Inc TACA International Airline Air Mauritius United Airlines Emirates Airline Etihad Airways All Nippon Airways Co., Ltd (ANA) Ethiopian Airlines Group Asiana Airlines, Inc. flyEgypt Japan Airlines Gulf Air B.S.C. (c) Qantas Airways Limited Oman Air S.A.O.C. Singapore Airlines Qatar Airways SriLankan Airlines Saudia SaudiGulf Airlines The Benefits can be significant
At industry Per As a % of level Passenger Revenue $40bn $7 4% As an industry As an industry Annual value creation average average by 2030
Source: McKinsey study – November 2019 Five ways airline retailing creates value
1 2 3 4 5
Development of Enhanced Optimized Better Customer Optimized New Offers Revenue Distribution Mix Targeting and Payment and Management Engagement Fulfilment