Grounded Jets all across the World. Air passenger demand decreased by 95% - basically overnight. The picture captures only a small part of the scale of this crisis in the airline industry and its world paused by Covid-19.
Rising to the challenges of a crisis is nothing new to airlines, the broader aviation and travel sector. The industry has overcome past desasters including epidemics, wars, oil crisis, terror attacks, economic recessions and safety incidents, and it will overcome the COVID-19 pandemics as well. Experts predict though that the scope of this crisis will trump any previous one, as displayed in the International passenger traffic evolution chart from 1945 - 2020.
The International Civil Aviation Organization, the UN World Tourism Organization and the World Trade Organization estimate in their latest study that the overall international passenger traffic for the full year of 2020 will decrease by 38%-55% resulting in an approx. potential loss of USD 151 to 228 billion of gross operating revenues of airlines on a V-shaped path - contingent on a first sign of recovery in late May!
The recovery of the industry and how it will be transformed will eventually depend upon various factors - duration and magnitude of the outbreak, containment measures, the actions that government, industry and individual airlines take, consumers' confidence and economic conditions are just a few of them.