The aviation industry has been significantly impacted by the disruption and travel restrictions resulting from the COVID-19 pandemic. With a huge portion of the global fleet of passenger aircraft sitting idle and airlines, lessors, airports and support businesses facing a drop in revenues, we look at the steps businesses can take to survive and adapt.
COVID-19 is an unprecedented shock to the global aviation industry, affecting all companies and geographies. The dual impact of travel restrictions and lockdown measures in nearly every region of the world has led to a significant drop in airline activity and revenues. The result has been near-empty flights, mass ticket cancellations and a large portion of the global aircraft fleet sitting idle. In mid-April, it was estimated that 14,400 of the 22,000 global fleet of passenger airliners were inactive. This shock to airline passenger numbers will have direct and serious implications to all aspects of the aviation value chain, including airport operations and support services.
With the International Air Transport Association predicting that European airline revenues could suffer a 55% fall compared to 2019 and a potential global loss of between US$63 billion and US$113 billion, it is clear that this is a uniquely dangerous situation.
Our experts develop crisis strategies for the aviation industry. If you would like to discuss any of the topics raised, please contact our expert Andrew Dickson.