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Global air traffic is projected to decline by half in 2020 and business might not return to pre-pandemic levels until 2023.
The consequences for airlines will be detrimental — and passengers who start flying again will have to bear the costs https://trib.al/aozF2K9
The consequences for airlines will be detrimental — and passengers who start flying again will have to bear the costs https://trib.al/aozF2K9
The drawn-out recovery will accentuate all the aspects of flying that travelers bemoan.
Did you think travel in 2019 was costly, crowded, mean and lacking in glamour? Get used to it https://trib.al/aozF2K9
Did you think travel in 2019 was costly, crowded, mean and lacking in glamour? Get used to it https://trib.al/aozF2K9
The decline of business travel poses the biggest threat to the industry.
Premium-class travelers account for about 5% of traffic but 30% of airline revenue, allowing carriers to offer economy seats at cheaper fares https://trib.al/aozF2K9
Premium-class travelers account for about 5% of traffic but 30% of airline revenue, allowing carriers to offer economy seats at cheaper fares https://trib.al/aozF2K9
Recessions typically lead to a three-year slump in air travel — and the one we’re seeing is likely to be unprecedented in its depth and length.
The industry will have to reckon with the mountain of debt it’s taken on https://trib.al/aozF2K9
The industry will have to reckon with the mountain of debt it’s taken on https://trib.al/aozF2K9
Some carriers will be able to withstand the crisis:
Australia
Japan
China
Those in large domestic markets that have been spared the worst of the virus should do better, as will regional Asian carriers and budget airlines in the EU https://trib.al/aozF2K9
AustraliaJapanChinaThose in large domestic markets that have been spared the worst of the virus should do better, as will regional Asian carriers and budget airlines in the EU https://trib.al/aozF2K9
Airlines based in large domestic markets hit hardest by Covid-19 will find it harder.
America
India
Brazil
Russia
https://trib.al/aozF2K9
AmericaIndiaBrazilRussiahttps://trib.al/aozF2K9
The worst affected are likely to be the sort of long-haul connecting airlines:
Singapore Airlines
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
These won’t look like viable businesses for many years https://trib.al/aozF2K9
Singapore AirlinesCathay PacificEmiratesEtihad AirwaysQatar Airways These won’t look like viable businesses for many years https://trib.al/aozF2K9
Fortunately, governments have already extended some $123 billion of aid — equivalent to the last four years’ worth of industry profits.
Without support, only a handful of budget carriers are likely to survive on their own feet https://trib.al/aozF2K9
Without support, only a handful of budget carriers are likely to survive on their own feet https://trib.al/aozF2K9
That will translate into unpleasant experiences for passengers.
You’re unlikely to find yourself surrounded by socially-distanced empty seats — even easyJet, which proposed that measure in April, subsequently dropped it https://trib.al/aozF2K9
You’re unlikely to find yourself surrounded by socially-distanced empty seats — even easyJet, which proposed that measure in April, subsequently dropped it https://trib.al/aozF2K9
Airlines at the best of times can’t make money unless they fill 80% of the plane.
Your best hope of avoiding infection will be either to wear a mask, to count on the reliability of in-cabin air filtration or to avoid flying altogether https://trib.al/aozF2K9
Your best hope of avoiding infection will be either to wear a mask, to count on the reliability of in-cabin air filtration or to avoid flying altogether https://trib.al/aozF2K9
Carriers will amplify making money on everything but the tickets themselves:
Baggage fees
Extra legroom
On-board meals
Miles
Hotel and car bookings
Ancillary revenues have risen five-fold over the past decade to hit $109.5 billion last year https://trib.al/aozF2K9
Baggage feesExtra legroomOn-board mealsMilesHotel and car bookingsAncillary revenues have risen five-fold over the past decade to hit $109.5 billion last year https://trib.al/aozF2K9
When it comes to seats, some are predicting that the FAA will give carriers the green light to pack people even closer together.
The truth is, consumers are willing to overlook all manner of indignities in the name of cheap fare https://trib.al/aozF2K9
The truth is, consumers are willing to overlook all manner of indignities in the name of cheap fare https://trib.al/aozF2K9
