Impact of COVID-19 on the Global Airline Industry - Hot Topic Brief - Issue 8
- June 2020 •
- 18 pages •
- Report ID: 5918108 •
- Format: PDF
COVID-19, commonly referred to as the Coronavirus, is dominating headlines the world over. No industry has seen a greater impact than airlines.
- Qantas and Jet2 added to pessimism this week as they announced potential permanent job losses and, in the case of the latter, reduced schedules for 2020 and 2021.
- However, the news is not all bad and it is crucial that positive signs are not ignored. Virgin Australia has found a buyer in Bain Capital and Lufthansa shareholders voted in favour of accepting a €9bn ($10.1bn) support package from the German government that will see it acquire a 20% stake. This provides some certainty for an airline that said it would have faced bankruptcy without help. In the UK, Manchester Airport announced the reopening of a terminal and East Midlands Airport in England has this week seen flights for the first time since March. Norwegian has experienced unexpected demand and is consequently reinstating more routes than originally planned.
- India and Brazil and reportedly seeing an uptick in domestic flight bookings despite being in the midst of a surge in confirmed COVID-19 cases.
- In the US, JetBlue has announced the launch of new routes as it looks to capitalize on what it sees as an increased preference for point-to-point flying and a nascent industry recovery.
- This report provides insight into the current state of play, offers a look at potential future scenarios and assesses the actions that airlines can take to mitigate the impact of COVID-19.
Reasons to Buy
- Gain an overview of the current global COVID-19 situation
- Understand the impact that COVID-19 is having on the industry
- Explore future industry scenarios
- Assess possible mitigating actions
- Compare key industry players’ actions