Aviation Conundrum: Passenger Demand Declined By 79.8% in July

The global aviation industry has recorded 79.8% decline in passengers in July 2020 in comparison to July 2019 levels.

This, however, was somewhat better than the 86.6% year-over-year decline recorded in June.

Air travel remains largely closed despite the availability of global protocols to enable the safe re-start of aviation (Take-off guidance) developed by the International Civil Aviation Organization (ICAO) with the support of the World Health Organization (WHO) to curb the spread of the COVID-19 pandemic.

The International Air Transport Association (IATA), attributes the decline in passengers to government policies such as closed borders, travel restrictions and quarantines continue to annihilate travel demand.

According to Director General and CEO, Alexandre de Juniac, “the crisis in demand continued with little respite in July. With essentially four in five air travelers staying home, the industry remains largely paralyzed”

“Governments reopening and then closing borders or removing and then re-imposing quarantines does not give many consumers confidence to make travel plans, nor airlines to rebuild schedules”.

IATA’s call reflects deep industry frustration as government policies such as closed borders, travel restrictions and quarantines continue to annihilate travel demand.

According to IATA, “Protecting their citizens must be the top priority of governments. But too many governments are fighting a global pandemic in isolation with a view that closing borders is the only solution.

“It’s time for governments to work together to implement measures that will enable economic and social life to resume, while controlling the spread of the virus”.

IATA argued that governments need to grasp the seriousness of the crisis facing the airline industry and its consequences for their citizens; and urged governments to focus their attention on re-opening borders, continuing relief measures and global leadership.

Also, IATA lamented governments changing of entry requirements with little notice to travelers or coordination with their trading partners. This uncertainty destroys demand. Ten percent of the global economy is sustained by travel and tourism; governments need to do better to re-start it.

Meanwhile, with the exception of some domestic markets there is little evidence of an early industry recovery for the aviation. Airlines continue to lose billions of dollars and are facing difficult decisions to resize their operations and workforce for the future.

“Many airlines will not have the financial means to survive an indefinite shutdown that, for many, already exceeds a half-year. In these extraordinary times, governments will need to continue with financial and other relief measures to the greatest extent possible.”

“It’s a solid investment in the recovery because each airline job saved supports 24 in the broader economy. And a functioning airline industry will be a critical enabler for economies to regain their full powers,” IATA added.