The world has never seen anything like the COVID19. The movement and free travel has almost evaporated overnight.The number of flights around the world has gone down by 94 percent. The recovery is far from happening.The It could exacerbate existing inequalities, create hardships and disrupt workings of the globalised world.
The effects of COVID19 is much beyond cancelled holiday plans. Holiday makers spend approximately 1.6 trillion Dollars on travel every year. In April 2020 Planes carries just 31million passengers around the world, which was close to the levels of late 1970's. Flights in Europe are still below 75 percent which is much below the levels last year.
Most airlines have announced job cuts. Air Canada has lost more than 1 Bn dollar in the first quarter. IATA announced that not more than 30 of the 700 airlines will cease to exist without Government aid.
The travel recovery looks farther off. After the financial crises of 2008, business travel has still not come back to the pre crisis levels. Leisure travel has eventually come back to pre crises levels. Flight levels around the world remain much below normal. All this could have a significant impact on Airline profits.
Prices are much likely to go up on routes where there is little or no competition. Lower income travellers may find themselves prices outside the skies which will have a further impact on various socio economic factors.
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