The fight between the Covid-19 pandemic and air transport has a clear winner so far: Are we facing a historical change?

Michaela Rysava

A chapter in CNB Global Economic Outlook - November 2020, 2020, pp 12-18 from Czech National Bank, Research and Statistics Department

Abstract: Air transport, which is a major global industry, is experiencing its worst crisis in its century-old history. The expectation that the situation will return to "normal" and that lost revenues will be recovered is more than optimistic given the large level of uncertainty in the sector. This is coupled with a lack of passenger confidence arising from the possibility of infection, with people from all over the world gathered in the enclosed space of an aircraft. From the airlines' perspective, the situation seems to be somewhat better for low-cost carriers (LCCs) but the entire air transport sector will be hit with a fall in employment. The two major aircraft manufacturers have suffered enormous losses, although European Airbus has fared better than US Boeing. Air freight transport has also been hit. This segment is crucial for the operation of global supply chains, especially for food and medical supplies in the current situation. The air transport market is experiencing a number of long-term or even possibly permanent changes. The most significant ones include falling ticket prices offered with numerous benefits, the cancellation of most fees, the decommissioning of large-capacity aircraft and a loss of interest in business or long-haul flights.

Date: 2020
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