The aviation industry is poised for a gradual recovery and is expected to reach USD 1.09 trillion by 2028, registering a CAGR of 8.9% from 2021 to 2028, the 2021 Research and Markets has revealed.
The outbreak of the COVID-19 pandemic has taken a severe toll on the global civil aviation industry, which has had to confront considerable revenue losses over the past year.
Airline operators took a drastic hit as several governments across the world imposed restrictions on the movement of people as part of the efforts to arrest the spread of coronavirus and people preferred keeping travel-related activities at bay owing to concerns over the risk of contraction of the disease. The demand for air travel continued to plummet as a result.
The initial response to the outbreak of the pandemic was limited to prohibiting travelers from China. However, with the rapid spread of coronavirus across the world, several governments went on to impose travel bans.
The World Health Organization (WHO) coordinated with various governments to issue a global health advisory and urged people across the globe to avoid all travel activities.
The subsequent dramatic decline in air passenger traffic following such containment measures poses a severe threat to numerous incumbents of the aviation industry.
At this juncture, airline operators are focusing aggressively on reviving themselves amid the challenging situation.
Airlines are also focusing on regaining passengers’ trust by ensuring sanitized cabins and guaranteeing touchless travel. At the same time, several governments worldwide are instilling cash in the aviation industry.
Numerous airlines in the U.S. and the Gulf have already become solvent, even with reduced revenue inflows, leveraging the support they received from their respective governments.
COVID-19 Impact On Civil Aviation Industry, Report Highlights
Both domestic and international air passenger traffic plummeted approximately 60% over the year in 2020. However, domestic air travel is recovering ahead of international air travel as various governments are easing the restrictions on the movement of people and permitting domestic air travel.
Airlines are putting a strong emphasis on enhancing the traveling experience by implementing solutions based on the latest technologies, such as thermal scanning, biometric scanning, and UV ray disinfection.
Asia Pacific is expected to recover faster than other regional markets. The level of consumer confidence among passengers in the region has been improving as a result of the efforts being pursued by the governments in the region to contain the spread of coronavirus.Operators, including American Airlines, Alaska Airlines, and South West Airlines, are adopting unique marketing plans to attract passengers as part of the efforts
Source- Research and Markets
By Joyce Mukucha