Impact of Covid-19 on Airline Industry

Feb 26, 2021News

There’s no question that the COVID-19 pandemic has impacted the aviation and travel industries the most. Airlines and airports across the world are reporting huge losses, and even the most optimistic timeframe for recovery is at least two years. Some analysts question whether travel will ever return to the way it was as businesses adapt to new and more efficient ways of working.

Businesses are now far more used to working from home, using platforms like Zoom or Microsoft Teams. Questions are now being raised, asking if this is how businesses will look and operate moving forward.

Benjamin Laker

Contributor , Forbes

While less business travel may not sound like great news for the airline industry, the silver lining is that there is now an opportunity for the travel industry to reform in a more sustainable way. There will always be a demand for travel, but as we become more conscious of our carbon footprint, we may choose to not stray as far or as often. 

But for now, air travel remains limited, and improvement will be subject to the effectiveness of the vaccination roll out across the world.

Covid-19 Aviation Impact:  Key Stats from 2020

Late last year, Airports Council International Europe (ACI Europe) warned that nearly 200 airports across the UK and Europe were at risk of collapsing. It hasn’t happened yet, but with Heathrow posting a 2 billion pound loss last week, there are concerns over how long airports can sustain such huge losses.

Other eye-watering figures from 2020 include:


Drop in passengers passing through Heathrow airport


Drop in airline seating capacity


Drop in domestic travel in Australia


Drop in cargo capacity

  • EasyJet recorded a 1.68 billion dollar loss – the first-ever loss in its 25-year history
  • Qantas posted a 1.08 billion loss for the first half of the 2020/2021 financial year and has suffered the biggest revenue drop of any company in Australia.

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