MTF business update

Skytra’s management is currently adapting to the COVID-19 crisis by reviewing how best to launch the Skytra Price Indices. In the current climate we see it as our responsibility to find the best possible way to bring our indices to market in the fastest and most cost-effective manner. As such, we are proactively re-evaluating the way the trading venue is delivered.

The trading venue is an essential part of the overall value proposition since it enables hedging trades based on the value of the Skytra Price Indices. We are currently evaluating the best route to market, which encompasses a range of options from partnerships and licensing agreements with existing partners to in-house solutions.

The overall market model to enable hedging strategies on air travel revenue volatility for airlines, travel agents and financial intermediaries, has not changed. In fact, the current climate has been the perfect stress-test for our benchmark production process. The Skytra Price Indices have behaved as expected, which is a strong indication that the hedging mechanism would have worked. The observed higher volatility of air travel prices as a result of COVID-19 has triggered a significantly increased need for hedging. This has heightened the interest and demand for our products and fuels our evaluation of how best to bring these risk management tools to market.

The COVID-19 global pandemic has motivated Skytra not only to accelerate the time to market, but also to produce additional data products. These will leverage Skytra’s immense ticketing database to help the industry make informed decisions based on visible ticket booking trends. The whole air travel value chain, including airports, travel agents, airlines and hotels, will be able to use this forward looking data for planning capacity, scheduling and resourcing. Research desks and other financial services professionals can also use this data to increase their knowledge of the underlying market in relation to air travel. Forward looking booking data will be key to providing transparency and insight into the air travel industry as it returns to normal operation following the COVID-19 crisis.

Airbus remains fully committed to Skytra’s mission of bringing new risk management tools to the aviation industry and Skytra remains a 100% owned Airbus company. We continue to work collaboratively with Airbus, our customers and the wider air travel ecosystem.

Page last updated: 8.7.20

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Skytra Limited is currently applying to the UK FCA for registration to act as a benchmark administrator. Skytra Limited is a wholly-owned subsidiary of Airbus, and is a company incorporated in England and Wales under registered number 11984828. VAT number: 335130145 and LEI 254900Y389SLBTPDX711. The content on this website for information purposes only. None of the information concerning the services or products described constitutes advice or a recommendation of any product or service. To the extent that the information provided constitutes a financial promotion as defined by section 21 of the Financial Services and Markets Act 2000, it is only directed at persons who qualify as Professional clients as classified by MiFID II. © Copyright Skytra Limited
Skytra is an Airbus company facilitating financial risk transfer for the air travel industry