After a devastating 2020 and colossal revenue losses caused by the first and second wave of the pandemic, COVID-19 continues to severely impact the aviation industry.
The growing number of COVID-19 cases, fears of travel restrictions due to the Delta variant and concerns about economic recovery are prolonging the pain for the world's largest airlines.
According to data presented by StockApps.com, commercial airlines are expected to end this year with losses of nearly $64 billion and revenues 43% lower than before the pandemic.
Statistics show the global commercial aviation profit loss is expected to reach $64.2 billion this year, after the industry lost almost $171 billion in 2020.
Prior to the global health crisis, the aviation industry enjoyed stable growth, with revenues rising at an average 5.3% between 2009 and 2019.
After the pandemic hit, revenue streams dropped to historically low levels, with most of the world's biggest airlines not even covering operating costs. Although government assistance brought hope for the steady recovery of the global aviation industry, this could take years.
Along with remaining one of the worst-hit sectors during the pandemic, the entire market faces increased costs, including labor and fuel.
North America is the only region expected to witness significant recovery next year, with IATA predicting that airlines will earn $12.2 billion in profit in 2022. Canadian numbers are not broken out in the statistics.
Besides increased costs and plunging profits, the entire airline industry is facing massive changes in travel habits caused by the COVID-19 pandemic.
According to the Passenger Confidence Tracker 2021, commissioned by Inmarsat, 84% of respondents claim their travel habits are likely to change post-COVID-19. Around 35% of people have decided to travel less frequently by any means after the pandemic ends, while almost 30% says they would travel less frequently by air.
Catching the virus is the biggest concern preventing people from traveling abroad, with a 52% share among respondents. However, the five other concerns with high shares of responses were also all related to the pandemic.
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