Moody’s Expects Airlines Passenger Demand to Gain Footing in Late 2023!

The global demand for global airlines is expected to recover to pre-pandemic levels until the end of 2023, said Moody’s while asserting that if effective vaccines and medicines are available.

 

The report stated that the demand for air travel dropped by more than 90% within early weeks of the global outbreak. For airlines to survive and recover from a damaging stage, a vaccine, effective medicine and government’s support are needed.

“With an effective coronavirus vaccine likely not available before well into 2021 – and likely longer to cover potential mutations of the virus and to ensure adequate dosage supply for the masses – additional government support will be required for the airline industry if employment levels are to be maintained near already reduced levels, and potentially to stave off additional airline restructurings and insolvency proceedings,” wrote Moody’s in the statement.

Beside airlines, manufacturers such as Boeing and Airbus will be the last in the direct aviation industry to recover from the downfall to their 2019 footing.

 

In addition, airlines such as Flybe (UK), Trans States Airlines (US), Compass Airlines (US), Virgin Australia (Australia), Avianca (Colombia), Nok Scoot (Thailand) and Thai Airways (Thailand), etc. were either collapsed or bankrupted mainly due to the coronavirus outbreak.