Businesses are closing, people losing their jobs, flight cancellations globally, and people scared of getting the virus have resulted in a plunge in air travel.
COVID-19 has continuously affected the world today; this pandemic has undoubtedly taken a toll on everyone’s lives. But let’s focus on its impact on airlines.
Aviation is one of the industries that had a hard hit due to the outbreak of COVID-19. Airlines have grounded their entire fleets and suspended almost all of its flights. Most airlines make their profits from international flights, and international flights, for now, have been hit the hardest for them due to the border restrictions by each country.
According to ICAO, the International passenger traffic in 2020, compared to the baseline, has an overall passenger reduction of 1.2 to 1.4 billion and a potential loss of approximately USD 213 to 257 billion of gross operating revenues of airlines. While for the domestic passenger traffic, the overall passenger reduction would be 1.1 to 1.5 billion and approximately USD 102 to 133 billion potential loss of gross operating revenues.
It hurt the airlines’ revenues in just six months due to travel restrictions globally in trying to flatten the curve for COVID-19 that resulted in flight cancellations. But how long would it be like this? Several airlines are going bankrupt, and some are trying to survive by getting support from their government and cutting down the number of their employees along with grounded fleets to reduce costs.
It would be long until the demand for air travel bounces back as it previously was. But it is no doubt that in time, aviation will rise back stronger than ever before. For those who are in the aviation industry, do not lose hope as this too shall pass. Aviation will rise again, soon.