The International Air Transport Association (IATA) announced that International passenger demand in October was down 87.8 per cent compared to October 2019, virtually unchanged from the 88 per cent year-to-year decline recorded in September. Capacity was 76.9 per cent below previous year levels, and load factor shrank 38.3 percentage points to 42.9 per cent.
Meanwhile, domestic demand drove what little recovery there was, with October domestic traffic down 40.8 per cent compared to the prior year. This was improved from a 43 per cent year-to-year decline in September. Capacity was 29.7 per cent below 2019 levels and the load factor dropped 13.2 percentage points to 70.4 per cent.
“Fresh outbreaks of COVID-19 and governments’ continued reliance on heavy-handed quarantines resulted in another catastrophic month for air travel demand. While the pace of recovery is faster in some regions than others, the overall picture for international travel is grim. This uneven recovery is more pronounced in domestic markets, with China’s domestic market having nearly recovered, while most others remain deeply depressed,” said Alexandre de Juniac, IATA’s Director General and CEO.
According to IATA, Asia-Pacific airlines’ October traffic collapsed 95.6 per cent compared to the year-ago period, which was unchanged from September. The region continued to suffer from the steepest traffic declines. Capacity plummeted 88.5 per cent and load factor sagged 49.4 percentage points to 30.3 per cent, the lowest among regions.
China’s domestic traffic was down just 1.4 per cent in October compared to October a year ago. The domestic economy was close to normality and low fares and so-called ’all you can fly’ deals boosted demand.
“This crisis is unrelenting. Our latest economic outlook is for airlines to lose $118.5 billion this year, or $66 for every passenger carried. Assuming borders re-open by mid-2021, the industry will ‘only’ lose $38.7 billion in 2021. Now is the time for governments to step up. The $173 billion of support provided to date has enabled the industry to survive, but more is required to carry the industry through to next summer. IATA has identified a range of market stimulation options that will support the viability of air routes while encouraging people to travel. Without aviation’s $3.5 trillion contribution to global GDP, there can be no broader economic recovery,” said de Juniac.
