Aviation Industry might Not Fully Recover before 2024
Today the sky that used to be full of aircraft is empty, where on one side that is a positive sign of healing the environment, on the other side, it has a serious implication on the global aviation business. If India is to be talked about, it was only two years back that a full-fledged working airline Jet-airways went bankrupt and was shut in a short time, leaving the employees in disarray. Experts are predicting that the global aviation business at least takes 3-4 years to get back on its feet like the pre-COVID times.
Global airline companies said on Tuesday that the coronavirus pandemic would take the industry a long time to pull out of the crisis since people are skeptical of venturing out. The companies said that passenger traffic will be able to reach the level before the coronavirus pandemic by 2024. In earlier estimates released, the companies had said that by 2023, air traffic would be able to return to the pre-coronavirus pandemic.
The slow pace of pandemic prevention will take the industry more time to come out of the crisis
The International Air Transport Association (IATA) said in a report that the pace of prevention of coronavirus in the US and developing countries is slow and corporate travel is not likely to accelerate soon. Restrictions are still in place in many markets, affecting the near-term estimates. According to IATA, the number of air passengers in 2020 may decline by 55 percent year-on-year. Earlier estimates had predicted a 46 percent drop in the number of air passengers this year.
The number of air passengers in June was 86.5 percent less
In June, the number of air passengers was down 86.5 percent year-on-year. Earlier in May, there was a drop of 91 percent in passenger numbers compared to the figure a year earlier. IATA said the possibility of increasing passenger numbers seems to be much less as the coronavirus epidemic spreads in the US and developing countries. These markets contribute 40 percent of the world’s air travelers but would not be contributing as much because of the current world crisis.
Air traffic will increase due to the cheaper option of virus testing
Subhash Menon, director-general of Asia Pacific Airlines said, that unless there is a cheaper and more acceptable alternative to virus testing, the number of air travelers is unlikely to increase. He said that if the cost of the test is low, the passengers will want to bear the cost. Right now, its cost is very high and is not expected to come down soon. In a fateful decision, Go Air, an Indian Airline has decided to put an additional cost on the seat allotments to the passengers.