Case Study: How COVID-19 Crippled Air Travel in the U.S. Executive Summary

Case Study: How COVID-19 Crippled Air Travel in the U.S. Executive Summary

 

For two years, from 2019 to 2021, almost every State in the globe was affected by a respiratory disease known as Covid-19. Being a respiratory disease caused by a virus, it did spread at a higher rate even to the majority of the nation that had strict non-pharmaceutical interventions, such as Germany, the U.S., the U.K., and Australia. Consequently, the pandemic has caused various sectors adverse social and economic disruptions. Tens of millions of people were faced with the risk of extreme poverty. This respiratory disease resulted in a massive dislocation of the small and large industries worldwide; more importantly, in the U.S., food, and accommodation, agriculture, arts, manufacturing, health, transportation, and mining are the most affected industries by covid-19 in the United States. Therefore, this report prioritizes exploring the impact of the Covid-19 pandemic on the aviation industry in the U.S. The report will explore both effects on domestic and international air travel. The research findings indicate that (1) Airlines were the most affected subsectors of the aviation industry. Due to the covid-19 pandemic, the U.S. airlines only managed to generate $130 billion, a significant drop compared to the previous years. For instance, in 2019, the total revenue generated equaled $248 billion, and in 2018, more than$ 240 billion, (2) the covid-19 pandemic also disrupted the stability of the U.S. domestic air travel operations reducing it by 71% in 2020. As a result, more than 32% of the United States markets declined, and (3) a more significant drop in international air travel operations was observed.

Introduction

For two years, from 2019 to 2021, almost every State in the globe was affected by a respiratory disease known as Covid-19. It is a pandemic that took every part of the world by surprise. It drastically impacted human life around the globe and presented numerous challenges during that time. The covid-19 pandemic, recorded on 2019 December 31st, is the recent feared pandemic with a mortality rate of about 6 million people around the globe. Nonetheless, the virus infected more than 17 million people seven months after the World Health Organization declared it a global pandemic in February 2020. Being a respiratory disease caused by a virus, it did spread at a higher rate even to the majority of the nation that had strict non-pharmaceutical interventions, such as Germany, the U.S., the U.K., and Australia. Its spread was fast, reaching more than three-quarters of the world within months. Its spread continued to instill fear in the people around the globe with no hope of its end. Consequently, the pandemic has caused various sectors adverse social and economic disruptions. Tens of millions of people face the risk of extreme poverty. The pandemic resulted in a dramatic loss of citizens’ lives around the globe, but also millions of corporate businesses and industries faced the risk of extinction. This respiratory disease resulted in a massive dislocation of small and large industries worldwide. More importantly, in the U.S. Significantly, the pandemic caused both an economic crisis and a health crisis. Ideally, the pandemic pushed the United States healthcare facilities to their limits. On the other hand, it caused an international economic slowdown in all parts of the U.S. According to Suneson (2020), airlines, theaters, hotels, live sports, shipping, film production, oil, and gas, etc., are among the business categories that were disrupted by the pandemic in the U.S. Furthermore, food and accommodation, agricultural, arts, manufacturing, health, transportation, and mining, are the most affected industries by covid-19 in the United States. Therefore, this report will survey on the consequences of the Covid-19 pandemic on the aviation industry in the U.S. The report will explore both effects on domestic and international air travel.

Effects of Covid-19 on Air Travel

Overview

Almost every research material, website, and blog site on the internet contains the Covid-19 pandemic advert for increasing its awareness to the public worldwide today. Similarly, this is the case for air travel in the country. Following the negative consequences of the covid-19, the majority of the aviation companies were urged to take responsibility for reducing the spread of the virus. Before venturing into the results of covid-19 on air travel in the U.S., it is crucial to understand that aviation transport plays a vital role in its economic and social development.

Federal Aviation Administration (2016) report indicates that aviation travels have impacted the economic growth and development of the United States in the following ways; namely, enhancing economic prosperity through transportation of people and goods, energizing the country’s economy by connecting it with the outside

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