Airlines Will Face a Harsh Winter
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Airlines Will Face a Harsh Winter

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Alicia Arizpe By Alicia Arizpe | Senior Writer - Tue, 06/16/2020 - 11:54

The virtual halt in operations airlines are now dealing with due to the COVID-19 outbreak might turn a historically slow period much worse, warns the International Air Travel Association (IATA). As a growing number of recent travelers indicate that they would postpone future trips due to the pandemic, associations warned airlines that they should prepare for a harsh winter.

The COVID-19 outbreak has brought the aviation industry to its lowest point in history. Demand plummeted in April and has been slow to recover. The recent lifting of some travel restrictions has given hope to the sector of a potential recovery ahead. However, a recent analysis made by IATA indicates that recent travelers are increasingly wary to return to the skies either out of fear of the virus or due to economic hurdles caused by the global recession. Back in April, the association had reported that 21 percent of individuals would wait six months before traveling again. This number rose to 36 percent in June. Moreover, only 45 percent of those surveyed indicated that they planned to travel again within a few months of the containment of the outbreak.

This is only one of many signs that highlight the trouble the industry is facing. Others include an 82 percent shrinkage in bookings during June 2020 compared to the same month the previous year, which adds to the downward trend airlines had seen during May. Mexican airlines also a saw sharp reduction in demand in May that is expected to continue through June. This is troublesome for the industry as historically “the bulk of airlines make their money in the northern summer season, while the winter season, even in the best of times, is a struggle to remain profitable,” said IATA. Moreover, the association is seeing a reduction of forward bookings for the first week of November of this year of 59 percent as passengers are now booking their flights closer to the travel time.

In order to support airlines to traverse the cold season, IATA reiterated its urging for financial assistance from local governments in the shape of tax deferrals and support in the implementation of health measures to protect passengers from COVID-19, among others. “Financial relief measures are still desperately needed. And policy-relief measures like a slot use waiver remain critical. Governments need to grant that by no later than the end of July to provide at least that certainty to this beleaguered and battered industry,” said Alexandre de Juniac, Director General and CEO of IATA.

Photo by:   Image by My pictures are CC0. When doing composings: from Pixabay

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