The current financial issues the airports are facing are due to the unfortunate global pandemic which ceased or halted travel for a while. It is predicted that this issue will continue on after the pandemic is over. With so many people having lost their jobs, the lack of business travel has especially hurt airlines financially. As well, there will most likely not be much business travel for years due to the fact that many companies have downsized, getting rid of employees. It is expected that business travel will go down by as much as 20% in the next couple of years because of this. This has caused US airlines to lose over $12 billion just in the second quarter. The airline industry has been placed in a crisis that it will take a very long time to recover from.
Historically it always takes a long time for business travel to recover after a recession so when do you think the airlines will recover the airlines ?
https://www.cnn.com/2020/10/27/economy/airlines-pandemic-recession-impact/index.html
8 comments:
I do think that some travel will be impacted and will be deemed unnecessary in the future. So, I have a hard time believing it will fully recover, but it will recover. People will feel more confident once there is a vaccine which will increase travel for vacations and so forth. Ultimately, the recovery will take time as seen in previous recession states.
I believe that the airline industry will never fully recover. If there is a vaccine, I do agree that there will be more vacations for travel. However, many corporations have decided many business flights were unnecessary and applications like Zoom could provide similar results. I see a sharp decline in business travel even if we do get this virus under control.
I agree with Kofi that Zoom will definitely have an effect on the recovery of the airline industry because as we have seen with a lot of our classes Zoom has made it extremely useful to meet and stay in contact with people. Throughout the last couple of months we have also seen Zoom incorporate a lot of new features in order to facilitate doing business through Zoom so I feel like a lot of business travel will not be necessary .
What I believe is that if we look at the history and in general how far have we come in terms of growth and all, we will overcome this aswell, but the real question is how soon? Well that depends on the people, on governement and business how they handle all that is going on in coming time. But for that, there should be a vaccine, and how safe that would be. Businesses and government need to work together to gain consumer confidence back and make it safer for the people.
I agree that airline travel will become less popular for awhile after covid, even if we so get a vaccine. Especially because people are finding ways to get places like driving and using zoom, like Kofi mentioned as well. This allows them to stay home and not have to travel. I think airlines will have to make significant cuts.
Commercial airlines will suffer entirely however depending on if the travel restrictions are lifted internationally, flying as a whole might not be ruined. The private sector of the aviation industry was not heavily affected by the pandemic. The expected trend in the private sector is that there will be an influx of people making the transition as long as they can afford it. This is all under the pretense that no one wants to fly commercial as well as the faulty airlines given the economy.
Although the airline industry will struggle to return to pre-COVID levels for a while, if ever, there will likely be a surge of travel once a vaccine is developed. As consumer saving has increased during the pandemic they will likely have increased spending once a return to somewhat normal is here. Airline industries will need to rebalance their strategies though, as the industry as a whole will drop. They will have a reduced need for planes and need to reduce some employees unfortunately.
After the Pandemic, there will still be many restrictions in different countries regarding certain airlines and which countries they are coming from. Many countries would have the vaccine available to them, so the flight industry might just go back to normal instead of having a time when people are not traveling. Some countries are still having their flights go to other countries and are fully functioning domestically, even though Coronavirus cases increase. We are getting ready for the next wave.
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