Passenger Airlines

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The payment practices within the UK Passenger Airlines sector present a challenging landscape for suppliers. With an average payment time of 79 days, this sector significantly lags behind prompt payment standards and likely exceeds the average across all UK sectors. A substantial 60.5% of invoices are paid late, indicating a high prevalence of delayed payments. Only 39.5% of payments are made within the ideal 30-day window, a concerning figure that demonstrates slow payment habits from airlines to their suppliers.

This suggests that passenger airlines, on average, are struggling with cashflow or prioritising other financial obligations over timely supplier payments. Compared to other sectors that prioritize efficiency and build strong relationships, passenger airlines appear to have an unsustainable approach to supplier payments.

Suppliers engaging with passenger airlines should be keenly aware of the elevated risk of delayed payments. Thorough due diligence, robust contracts, and proactive communication are essential to mitigate potential cashflow disruptions. Suppliers should carefully assess the financial stability of the airlines they work with and factor extended payment terms into their pricing strategies.

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