Ground handling organisations are facing growing financial strain as rising fuel costs ripple through the aviation sector, according to the Aviation Services Association.
While airlines have responded to higher fuel prices by introducing surcharges for passengers, they are simultaneously pushing suppliers — including ground handlers — to absorb cost reductions. This dynamic is placing GHOs under significant pressure, as they face the same inflationary cost environment without equivalent pricing flexibility.
Labour remains the largest cost component for ground handlers, accounting for between 50% and 65% of total operating expenditure. Despite mounting pressure, operators are resisting workforce reductions as a cost-cutting measure, drawing on lessons from the Covid-19 pandemic.
During the recovery phase, widespread staffing cuts led to major operational disruptions, and many experienced workers never returned to the industry. GHOs are determined to avoid repeating that scenario, recognising the long-term risks of eroding workforce capability.
At the same time, operators are dealing with volatile and reduced flight schedules, which are impacting staffing efficiency, financial performance and cash flow. The mismatch between operational demand and cost structures is becoming increasingly difficult to manage.
The ASA has emphasised the need for balanced solutions across the aviation value chain, calling on airlines and stakeholders to recognise that current pressures are shared.
The association continues to provide market data and analysis to support its members but maintains a neutral stance on pricing, stressing that each operator must make independent commercial decisions in compliance with competition law.
Ultimately, the organisation is urging closer collaboration across the industry to ensure that ground operations remain safe, resilient and financially sustainable in the long term.
