Planes grounded, record traffic and soaring fuel prices: the turbulence facing the Italian aviation sector

It was a black Friday for Italian air travel. Problems with ENAV’s nationwide data transmission network left several passengers stranded and caused delays across Italy, as air traffic was reduced by 50 per cent by the agency itself for safety reasons.

A similar incident, involving the transmission of radar data to the Milan Control Centre, occurred on 28 June last year in northern Italy; whilst it is still difficult to ascertain how similar the two cases are, it is worth noting that this is already the second time in just over a year that Italian passengers have been left stranded.

Last time, ENAV levelled accusations at a telecoms provider, and this time too, the Minister for Infrastructure and Transport, Matteo Salvini, has indicated that the problem was likely caused by the same provider.

Undoubtedly, given the current climate of hybrid attacks, people immediately suspected a cyberattack, but ENAV itself has ruled out this possibility.

The fact is that this issue should set alarm bells ringing, and we need to fully understand what has happened on these two recent occasions.

This is also because Italian air traffic continues to grow despite all the global challenges it is facing. 

Italy is set to set a new record for air passengers this year, with over 204/205 million travellers – that is, over 40 million more than the pre-Covid record set in 2019.

Apart from issues relating to the transmission network, there are a number of factors to bear in mind for a sector so vital to the economy.

The price of aviation fuel now stands at $1,600 per metric tonne, more than double what it was before the outbreak of the war and the subsequent blockade of the Strait of Hormuz. This is placing a strain on airlines, which are seeing their costs rise significantly, as 30–35 per cent of an airline’s costs are linked to the price of jet fuel.

Airfares are set to rise by 10–15 per cent next year, as the ‘hedges’ on fuel prices at pre-war levels are being eroded due to the prolonged nature of the conflict.

Some smaller, less financially stable airlines are restructuring due to financial difficulties, and some flights for the winter season are beginning to be cancelled.

This strong growth in the aviation market could slow down, but it is important that as much Italian air traffic as possible is ‘captured’ by our airports. 

Competition amongst airports is becoming increasingly global, and it is important that the various operators are able to carry out the necessary investments to expand the capacity of an excellent system (several Italian airports have won various quality awards in recent years), but one that is coming under increasing pressure due to the growth in air traffic.

Apart from ad hoc issues – which must, however, be fully understood to prevent them from recurring – we must continue to maintain a long-term vision for our aviation sector, which is ‘navigating turbulent waters’ but is characterised by areas of excellence that must be allowed to flourish.