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The industry is seeing a rebound from the depths of closures in April, but the bad news is any increase “is barely visible,” IATA chief economist Brian Pearce told a briefing in line for journalists.
Pearce said air travel was not rebounding alongside rising business confidence in Europe, the United States and China. Traffic declined 86.5% in June compared to the same month a year ago, compared to a 94.1% drop in April, measured in revenue passenger-kilometers, or the distance traveled by all generating passengers of income.
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This improvement is “nowhere near the increase in business confidence,” Pearce said. China is rebounding more than other countries, while the recovery in the United States has been thwarted by the recent surge in COVID-19 cases in a number of states.
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Along with further surges, travel is also held back by low consumer confidence and limited travel budgets at struggling businesses.
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“In addition, there are few signs of containment of the virus in many important emerging economies, which, in combination with the United States, accounts for around 40% of global air transport markets,” IATA said in a statement. communicated. “Their continued closure, especially to international travel, is significantly slowing the recovery.”
Despite parking many of their planes, airlines are struggling to fill enough seats to make money. Planes were only 62.9% full on global domestic flights, well below the levels at which airlines make money, and an abysmal 38.9% for international travel.
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The United States is seeing more cases of the coronavirus after some states move to lift restrictions on public life and business. The summer vacation season in Europe has seen more people move. There has been an increase in cases in Germany, which had previously done better than many other countries at mitigating the outbreak.
Germany has issued a travel warning for three regions of Spain and the UK has imposed a 14-day quarantine for travelers returning from Spain, a popular holiday destination.
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