Airlines Worldwide Could Lose US$48 Billion: OAGBy Sofía Hanna | Mon, 08/16/2021 - 17:48
Airlines worldwide could suffer a loss of US$48 billion in 2021 because capacity remains at around two-thirds of its normal levels, according to flight intelligence firm OGA. The sector continues having difficulties to recover from the COVID-19 pandemic and is expected to keep dragging in airline capacity during the next two months.
“Many of the major markets remain stranded, four of the top twenty have less than half of their 2019 capacity levels and seven of the top twenty have less than 60 percent of their January 2020 capacity (…) This week’s data is one of the slowest we have seen this year in terms of capacity changes that could reflect August being the peak holiday month or, more likely that until either China or the USA reopen their borders for “normal” international travel, then this could be as good as it gets and that’s a real worry for many airlines,” reports OAG.
The firm explains that the sector has been turbulent regarding demand in recent months, which complicates the development of forecasts or future plans. According to its recent report, the problem that airlines are facing is significant growth during certain months that was not possible to maintain for long, leading to a significant decline a few months later. While the recovery of the global aviation industry continues to drag, Mexico is showing one of the fastest recoveries in capacity, according to OAG. The firm explained that last week, Mexico was only 4.9 percent below its pre-pandemic levels, putting its recovery only below Greece’s and Russia’s. Mexican airlines have reported growth during recent months. In its 2Q2021 report, Volaris indicated an increase in domestic and international demand of 18.9 percent and 15.5 percent, respectively, when compared to 2019, as reported by MBN. Viva Aerobus also reported positive cash flow, a recovery in passenger traffic and growth over its 2019’s figures. Mexico remains within the Top 20 countries in capacity, occupying 9th place with a week-on-week change of 2.3 percent, according to OAG.