Aviation Industry Flying Through Troubled Skies

The COVID-19 outbreak remains the main concern of airlines and airports as air travel demand stays low. Moreover, the low demand for flights is also hurting planemakers, which have seen orders for new aircraft dry up, as well as airport stores and service providers. This week, Carlos Robles, Vice President of FEMIA, explained how the changes affecting the aviation industry will impact aircraft design and production.

In better news, Virgin Galactic signed an agreement with NASA to offer flights to the International Space Station (ISS).

COVID-19 and the Aviation Industry

• Airlines and airports continue struggling with low passenger demand, with several local airports reporting over 90 percent less passenger traffic in May, prompting the sector to strengthen security measures in a bid to get travelers flying again. 
• A casualty of the low airport traffic are duty-free shops, with Dufry announcing a reduction of 20-30 percent of its global workforce. The Swiss giant operates in over 65 markets and currently provides more than 31,000 jobs.
• At the end of last week, rumors that Aeroméxico was considering filing for Chapter 11 bankruptcy protection in a US court flew high, causing many to cast worried looks at the future of Mexico’s flagship airline. Aeroméxico, however, was quick to dismiss these rumors, stating that while it was looking for alternative financing options, filing for bankruptcy was not on the table.
• As more countries analyze opening their borders, the International Air Transport Association (IATA) urged governments to consider alternatives to quarantines as forcing travelers to undergo forced isolations would only delay the recovery of the aviation industry.