Worst Passenger Traffic Drop in Recent History: IATA

Airport traffic fell to levels not seen since 2006 as measures to contain COVID-19 spread across the world, reported the International Air Transport Association (IATA). While some countries raised the alarm on the outbreak in February, the effects of containment measures heavily intensified in March as many countries urged citizens to avoid all unnecessary travel.

The outbreak started to affect the global aviation industry in February, with the revenue passenger kilometers (RPKs), which are the number of revenue-paying passengers per the kilometers they traveled, falling by 10.3 percent, according to IATA. However, things took a turn for the worse in March as RPKs fell by 52.9 percent year-on-year in what the association calls “the largest decline in recent history.” The fall was pronounced during that month as an increasingly larger amount of countries entered lockdown and passengers avoided travel. Asia-Pacific was the most affected region with a 65.6 percent drop, followed by Europe with 54.3 percent, North America with 53.7 percent and Latin America with 45.9 percent.

IATA had warned that the outbreak would cost the industry US$340 billion in lost revenue during 2020 but the situation may be more dire than expected as the world enters an economic recession that may lead a growing number of people to postpone travel until their financial conditions stabilize. The association informed that the industry’s “recovery will not be V-shaped” as travel restrictions continue.

While Mexico has not closed its borders nor restricted local flights, the local aviation industry also fell sharply in March. The country’s three airports groups, which operate most commercial airports in Mexico, reported a double-digit drop in passenger traffic during the month. Grupo Aeroportuario de Sureste (ASUR) reported a 35.8 percent fall, Grupo Aeroportuario Centro Norte (OMA) 32.6 percent and Grupo Aeroportuario del Pacífico (GAP) 30.2 percent. Moreover, the traffic drop became more pronounced as outbreak containment measures intensified and extended as the country entered Phase 2 and Phase 3. By the end of April, airport operations in Mexico had fallen by 87.2 percent, warned the International Civil Aviation Association (ICAO).

IATA warns that the Mexican aviation industry will be the most affected by the pandemic in Latin America, following Brazil’s, and has been urging governments across the globe to implement relief measures for the troubled industry. The association explains that Mexico’s government has been receptive to these conversations but so far there has not been an agreement with the industry.