Air Transport: Forecasts in the New Reality

The constant resurgence of covid-19, the closure of international markets and the loss of consumer confidence, postpone the beginning of the recovery of the air industry, a process that is predicted to be long in the context of the new business reality.

Friday, August 14, 2020

According to the International Air Transport Association (IATA), in this context of business and economic crisis in a large number of countries at the global level, there is no evidence of strong growth in global demand for cargo and its progress continues to be an extraordinary challenge for airlines.

In some countries the airlines have already resumed their operations gradually and under strict safety protocols, but the companies have found a new reality that generates uncertainty, due to the constant outbreaks.

See "Tourism and Travel: Consumer Interests and Preferences"

Alexandre De Juniac, General Director and CEO of IATA, told that "... 'In many parts of the world contagion continues to increase. All this bodes well for a longer and more painful recovery period for the industry and the global economy'. International passenger traffic remains virtually 'non-existent', despite a slight improvement in June compared to May, so the overall recovery of this market is 'slower' than expected."

Weeks ago, CentralAmericaData reported that since restrictions began to be imposed due to the outbreak of covid-19 in the countries of the region, interest in travel agency services plummeted, but in mid-May the decline was halted and in June most countries recorded rebounds.

The article adds that "... Meanwhile, many of the world's airlines are still bearing the brunt of a crisis in which cash expenses cannot be controlled in the short term and the sources of income from the activity are almost non-existent. Although many have chosen to stop their operations."

Specialists in the field believe that one of the great challenges facing the sector is related to biosanitary protocols and it will be necessary for countries to standardize them as soon as possible.

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