(Finance and Economics) 23 airlines around the world shut down, the aviation industry strives to get out of the "new crown" haze
China News Service, Beijing, July 28 (Wang Qingkai and Wang Xiwei) The new crown pneumonia epidemic continues to spread, and 23 airlines worldwide have closed down. The International Air Transport Association predicts that the global aviation industry will lose 84.3 billion U.S. dollars in 2020, and it may take five years for aviation demand to return to pre-epidemic levels.
Currently, the activity of global airlines has dropped to a freezing point, and suspension of operations and losses have become a lingering nightmare. In addition to the 23 airlines that have gone bankrupt, many airlines are also in operational difficulties. American Airlines, British Airways, Lufthansa, Emirates and Qantas have announced plans for thousands of layoffs and unpaid leave.
The International Air Transport Association's report shows that airline passenger traffic in 2020 is expected to drop 54.7% year-on-year. Passenger traffic roughly halved to 2.25 billion passengers, roughly equal to the 2006 level.
Data show that in 2020, all regional airlines in the world will experience losses. Among them, airlines in the Asia-Pacific region are most affected by the epidemic. It is expected to lose 29 billion U.S. dollars, which is more than one-third of the estimated loss of the global aviation industry in 2020.
Currently, airlines have introduced new regulations, adopting methods such as "increasing revenue" and "cutting expenditure" to cope with the predicament, and strive to get out of the shadow of the epidemic.
The Institute of International Aviation pointed out that US airlines have demonstrated outstanding financing capabilities during the epidemic. As of the second quarter, U.S. airlines had obtained more than US$60 billion in non-government financing through various means, as well as more than US$50 billion in government grants and loans, and injected more than US$110 billion in capital into the industry.
At the same time, major US airlines have cut operating costs. By optimizing the fleet structure, accelerating the retirement of old aircraft, and actively reaching unpaid leave and voluntary early retirement agreements with employees, United Airlines and American Airlines reduced operating costs by US$6 billion year-on-year, and Delta Air Lines decreased by US$4.12 billion year-on-year Operating costs.
Other airlines are also working hard. Embraer has developed a series of cabin cargo modification solutions for its commercial aircraft in the face of the sharp decline in the number of air passengers and the rapid increase in demand for air cargo capacity; Argentine Airlines announced new flexibility Price list, and provide passengers with free rescheduling services on specific dates; Emirates promised to pay all passengers for COVID-19-related medical expenses and testing costs; China Eastern Airlines, Hainan Airlines and other airlines have also launched "Fly as you wish" projects. Air travel on weekends provides package discount services.
The International Air Transport Association urges governments of all countries to urgently provide liquidity to airlines to help them tide over the crisis. It is reported that American airlines have received US$25 billion in federal subsidies. The French government announced an assistance program of about 15 billion euros for the aviation industry on June 9. Lufthansa also received 9 billion euros in aid from the German government.
According to data recently released by the International Air Transport Association, governments around the world have provided airlines with US$123 billion in financial assistance in June, equivalent to 14% of the total revenue of the global aviation industry in 2019.
Currently, with the initial control of the epidemic in China and other countries, the total number of daily flights around the world is on the rise. Alexandre de Juniac, chairman and chief executive officer of the International Air Transport Association, said that as long as the epidemic does not spread for a second round, it means that the air transport industry has bottomed out. At present, domestic travel is the main growth point of the aviation industry, and the strong recovery of domestic travel in China, Germany and the United States has become the main driving force of the global aviation industry.
However, due to the unclear international epidemic situation and the continued tightening of travel restrictions in some countries, many airlines have postponed their planned go-around and capacity replenishment plans. Industry insiders estimate that it may take two to three years or even longer for the global aviation industry to return to normal. According to the forecast of the International Air Transport Association, before 2023, air passenger demand will not exceed the level of 2019, especially long-distance routes and international travel will be the most affected. (Finish)