Grand View Research is predicting that the civil aviation industry will eventually recover from COVID-19. The firm noted that domestic and international air travel was down an astonishing 60 percent during the pandemic, partly due to border closures and partly due to decreased demand as people stayed home to avoid catching and spreading the disease.
However, Grand View Research believes that there is hope on the horizon. The firm’s latest report suggests that the civil aviation market will grow at a modest CAGR of 8.9 percent for the next few years, climbing to $1.09 trillion between 2021 and 2028.
In the short term, Grand View Research believes that the domestic air travel market will recover earlier than the international one. That can be attributed to the more lax standards for domestic travel, since people are not crossing international borders and therefore do not need to worry about another country’s lockdown, quarantine, and entry requirements.
The air travel industry is also taking steps to win back the trust of passengers. Airports are now installing biometric screening technology to enable a touchless passenger experience, and are supplementing that with UV disinfection tech to ensure a sterile environment and make people feel more comfortable when using airport infrastructure.
Until then, governments are injecting cash into the airline industry to make sure that it survives through the lean period. Despite the dip in customer revenue, several major airlines in the US and the Gulf are already solvent thanks to the support of their various governments. That support has been similarly crucial in the Asia Pacific region, which is expected to recover more quickly than other regions around the world.
The Grand View Research findings echo those of other industry stakeholders. SITA, for instance, has predicted that the air travel industry will suffer a $47 billion loss in 2021, but believes that it will be able to recover through an aggressive digital transformation plan.
July 29, 2021 – by Eric Weiss