Global air passenger levels suffered a dramatic drop in 2020, after numerous countries imposed tough border restrictions in order to curb the rapid spread of the deadly coronavirus.
According to the International Air Transport Association (IATA), “The year 2020 brought an unprecedented challenge to the airline industry in a form of closed borders, strict travel controls, and depressed travel confidence – all effects of the pandemic.” As a result, passenger traffic fell by the most in aviation history, plummeting by a staggering 66% last year. IATA data also found that demand for air cargo dropped by 10.6% from 2019, which is the largest year-over-year decline since the agency started monitoring cargo performance in 1990.
The industry group also warned that the emergence of new, more transmittable strains of Covid-19 could further impact air travel demand in 2021, and thus subdue the recovery even further. “As countries strengthen travel restrictions in the face of new coronavirus variants, it is difficult to see improvements in passenger demand or the capacity crunch. 2021 will be another tough year,” IATA’s CEO Alexandre de Juniac explained.
Information for this briefing was found via the IATA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.