Aviation Industry Hits Bottom in April; Recovery May Be Ahead

The global aviation industry has been in a drought during the past few months as measures to contain the spread of COVID-19 took hold. While the sector seems to have hit rock bottom in April, a recent report from the International Air Transport Association (IATA) announces that there is hope ahead.

Signs of trouble for the global aviation industry began as early as February with a two-digit drop in demand. That month, IATA reported that revenue passenger kilometers (RPKs), which are the number of revenue-paying passengers per the kilometers they traveled, fell by 10.3 percent. The problem became worse in March as more and more countries implemented travel restrictions and closed their borders, leading many to avoid travel. That month RPKs fell by 52.9 percent, in what the association named “the largest decline in recent history.” The damage was widespread: Asia-Pacific saw a 65.6 percent drop in RPKs, followed by Europe with 54.3 percent, North America with 53.7 percent and Latin America with 45.9 percent.

April would prove to be worse. That month, RPKs fell by 94.3 percent year-on-year, a rate of decline that IATA calls unprecedented. The most affected region was Africa, with a 98.3 percent fall in RPKs, closely followed by Europe, which saw a 98.1 percent fall. Next came the Middle East with 97.3 percent less, North America with 96.6 percent, Latin America with 96.0 percent and Asia Pacific came last with 88.5 percent less. April was also a particularly harsh month for Mexico’s aviation industry, with Aeroméxico reporting a 93.3 percent drop in RPKs, Viva Aerobus a 85.7 percent fall and Volaris, which measures its figures in miles, a 81.8 percent drop in RPMs.

While the industry has been having a rough time, IATA is quick to point out that figures showed modest growth between April 21 and May 27, led mainly by domestic aviation. The association reported a 30 percent increase in daily flight totals and suggests that this might mean that the industry has already seen the lowest point of the crisis. “April was a disaster for aviation as air travel almost entirely stopped. But April may also represent the nadir of the crisis. Flight numbers are increasing. Countries are beginning to lift mobility restrictions,” said Alexandre de Juniac, Director General and CEO of IATA. To help the recovery of the industry, the association urged airlines and governments across the globe to support ICAO’s recently released guide to address the crisis.