Airline losses at historic lows in 2011

Global aviation had one of its safest years ever, with the lowest number of claims, fatalities and incidents recorded since at least 1995, according to a recent report from Aon.

Final losses for 2011, excluding minor claims, was $522 million, compared to $1.59 billion in 2010.

Although average fleet values grew by 8% and the number of passengers increased by 7%, average lead hull and liability premiums decreased 3%, states Aon’s Airline Insurance Market Outlook 2012.

“This is a cause for celebration across the industry, but there are a number of reasons why it may not instantly lead to the cost of airline insurance to plummet,” said Peter Schmitz, CEO of aviation for Aon Risk Solutions. “Not least of which is that 2011 is likely to have been only the second time in five years when underwriters will have seen a positive return on their airline books.”