The airline business is getting worse: understand why


The airline business is very familiar with collapse. However, the crisis that the sector faces now is different from the previous ones. Executives at companies in the sector are unable to estimate when passengers will return. The future of the airline business is very pessimistic.

The world is closed for business and there is forecast for complete vaccination. For everything to go back to what it was before, it can take months or years. And the industry can still change permanently, even when passengers start flying again. A definite change that might require a lot of investment and adjustments, just like the one caused by the 9/11 attacks.


airline business
The airline business is very familiar with the collapse. However, the crisis that the sector faces now is different from the previous ones. Know everything about it! (Source: The Points Guy)

Even worse, some airlines, especially smaller ones, may go bankrupt or be acquired under the current economic downturn. It may be necessary to rethink seats disposition because of people’s fear of catching the virus on airplanes. Airline companies might be able to attract some travelers at great discounts, but they can eventualy raise ticket prices if they are unable to fill the flights.

Understand the crisis is the airline business

Nothing could have saved the airline business from the unexpected pandemic crisis. Airlines’ struggle for survival will be long, perhaps one of the longest among all affected sectors. 

Airlines have cut back on virtually every possible expense to avoid bankruptcy. Several airport lounges were closed, something unimaginable before the pandemic, when the corridors were packed with travelers. Many flights were cut, while others were maintained because the schedules were set far in advance and flights had fixed costs, such as those for the cabin crew and pilots.

Something that still keeps some money going into the airlines’ account is the transportation of cargo on the bellies of planes.

Refunds are also avoided as much as possible by airlines, as companies try their best to give custumers vouchers so they don’t have to take money from the company.

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The airline business has faced major challenges in the past decade but has managed to develop well. After finally paying off debts and investing to modernize technology, now a new crisis is destabilizing the sector again and more than ever.

It is not possible to predict whether the recovery will happen soon. Many airline business experts have no hope that the sector will return to the same pace as before the pandemic in the coming years. The fear of travel will be the new villain of airlines from now on.


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Autor rodmaster

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