Every airline is suffering at the moment. The world economy has fallen and there is no way to get things back to normal until the time global pandemic is gone. One of the worst-hit sectors of the world economy, the global aviation industry is looking for something to go their way. But it seems like nothing is going to be in their favour for a long time. There are many things to consider before normal airline operations can be resumed. One of the most significant factors that remain is public sentiment towards flying in the crisis era. There aren’t many people who would want to fly with other passengers in such proximity.
The Air Travel Demand is Not Returning to Normal Anytime Soon
According to the International Air Transport Association (IATA), the airline passenger traffic will take at least time until the year 2023 to return to its pre-crisis levels. The demand may suffer even more than this if the new health rules impose a heavier base fare on the customers. Things are looking bad for the global aviation industry at the moment. One rule that none of the airlines wants to be implemented is leaving the middle seats vacant because it would unnecessarily increase the base fare for other passengers travelling.
Airlines are Going to Drop by 55% this Calendar Year
In the year 2020, the expected airline revenues are going to drop by a massive 55%. It has been estimated that global airlines all together are looking at a loss of $314 billion. Day by day, things are going more harmful for the airlines. Indian airlines such as SpiceJet have enormous fixed costs but they don’t have enough cash reserves to pay for it. Airlines have already started cutting down on the employees of their salaries. Some of the airlines are going to be helped by their governments, but it is not the same case with Indian airlines. The Indian government can’t provide a bailout package to the airlines because it doesn’t have the money.