Aircraft maker Airbus is going to set up a trading platform for airline tickets so that airlines have more certainty about their income. They depend on airline ticket prices, which fluctuate strongly.
The project is called Skytra and is based in London. Through the platform, companies can trade derivatives such as options based on the revenues of airlines. It will therefore not be a platform for consumers.
According to Skytra, airlines have to invest in the infrastructure years before a flight actually starts, but most tickets are only booked in the five weeks prior to a flight. Then the income only comes in.
Meanwhile, airline ticket prices are subject to constant change due to, among other things, political measures, the state of the economy and sudden spikes in supply and demand.
According to Elise Weber from Skytra, who comes from Airbus, travel organizations could be a natural counterparty when it comes to airline tickets.
Airlines already use such a system for fuel costs and risks around other currencies. To prevent airlines from being bothered too much by mobile oil prices, for example, they conclude contracts to cover that risk. The other party in such a contract then takes over the price risk in exchange for compensation.