Since the time COVID-19 has impacted the world, one of the most severely hit industries remains the aviation industry. This is because most of the airlines were struggling anyway before the global travel stopped. It resulted in huge losses for every airline and the economy. The International Air Transport Association (IATA) has said that it will take at least till 2024 for the global travel to come back to its pre-crisis levels. The growth rate is even slower than what most of the industry experts had assumed and predicted.
IATA: 86.5% Traffic Down in June Compared to Last Year
Brian Pearce, Chief Economist, IATA said that the rebound of air travel demand is barely visible since the time economies all around the world opened a little. The travel demand doesn’t match the opening business confidence in Europe, China, and the U.S. in any way.
Compared to the month of June 2019, the traffic was down by 86.5% this year’s June. As for April, it was down by 94.1% compared to the last year. At the same time, IATA noted that China’s traffic is bouncing back much better than any other country’s. While in the U.S., things have gone bad again. There was a slight rising demand in the U.S. for air travel, but the recent upsurge of the virus took it down.
Along with the new outbreaks of the virus, another important factor to consider is that people are scared to fly. There is weak consumer confidence and it will take some time before it comes back. Even different nations are not too confident about allowing international flights in their land.
A few months back, looking at the widespread of coronavirus, IATA said that it will take until 2023 for the aviation industry to recover. But now looking at the way things are going for the airlines, it has pushed its prediction back by a year. Now only time will tell whether this prediction from IATA is right or wrong.