SINGAPORE: A precise depiction of the airline industry’s recovery depends upon various factors, including duration and magnitude of the outbreak, containment measures in place, degree of passenger confidence to resume air travel, and prevailing economic conditions.
As the pandemic continues to play out, it is evident that we are living in an extremely volatile, uncertain, complex and ambiguous world. The closure of state borders in Australia between New South Wales and Victoria on Jul 7 has forced airlines to change their plans, just as domestic flying was about to ramp up.
More than a thousand flights to Beijing were cancelled in mid-June to manage a sudden coronavirus outbreak in parts of the capital.
In the near-term, airlines will be preoccupied with preserving cash, improving liquidity and getting airplanes back in the sky. Beyond that, airline decision makers must deliberate on the mid and long-term new normal with a sense of urgency.
READ: Commentary: Airline industry faces financial crisis with more bankruptcies looming
An enhanced focus on travel safety and profitable operations will be key in reducing the impact of external factors, allowing airlines to adjust and rebound quicker.
RESTORING PASSENGER CONFIDENCE IN AIR TRAVEL
Passenger confidence plays an increasingly important role in the travel demand recovery narrative.
On Jul 7, the International Air Transport Association (IATA) released its latest public opinion research showing the willingness to travel being tempered by concerns over the risks of catching COVID-19 during air travel, be it at the airport or on board the aircraft.
Currently, most flight bookings are related to essential travel such as people returning home or to their country of work, family visits and critical business trips.