Airline business down.
Once the COVID-19 crisis finally comes under control, many in the air travel industry are hoping for a swift and complete rebound in passenger traffic as the others aren’t as optimistic.
Many aviation analysts are saying that this diminished demand for air travel which is brought on by the coronavirus pandemic will likely persist for some time once the threat of contagion has passed.
CNN Business’ pointed out that passenger traffic didn’t fully bounce back until 2004 as well as looked back at the commercial aviation industry’s path to recovery after the 9/11 attacks in 2001. It wasn’t until 2013 that passenger traffic again reached the levels seen in 2007 in the wake of Global Financial Crises.
The world has witnessed over the past four weeks the fraction of those two crises seen in air traffic and travel business today. Even when people start flying again, it will take a long time for passenger air traffic to rebound from this downturn.
To fill more seats per plane, the airlines will resume operations but they’ll be selective about the routes they maintain and reduce the frequency. This will lead to higher fares than before after the crises.
Philip Baggaley, Chief credit analyst for airlines for S&P Global, explained that many of the low-costs seats that fliers once enjoyed will have vanished as the airlines will return fewer planes to service and fill those in operation to maximum capacity.
He also added that fewer seats flying means there will be cheap seats at the margin as per the airline business.
Industry consultant, Mike Boyd, told CNN Business that, there will be fewer aeroplanes flying. So, you will be paying more but you are going to have less choice. There will be no way around rather than paying high fares for airlines ticket.