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According to CNN, airlines are in a worse situation when it comes to revenue than we initially thought. Airlines are struggling to stay afloat during the COVID-19 pandemic and generating revenue. But there is a time after coronavirus passes that the travel industry has to recuperate the revenue that was lost. This will cause Fewer Flights and Higher Fares after the COVID-19 Pandemic.
Is the bail-out not enough?
The $50 Million Dollar bill to bail out airlines does provide some relief, but it doesn’t seem like enough to keep fares reasonably priced after the COVID-19 has been contained. The COVID-19 pandemic has cost many individuals their jobs and the prospect of gaining those positions back seems bleak. Airline traffic has plunged and it doesn’t seem like it will be recovering anytime soon.
“If the recovery is as slow as we fear, it means our airline and our workforce will have to be smaller than it is today,” said United CEO Oscar Munoz and President Scott Kirby in a message to their employees last Friday.CNN
Fewer Routes, Higher Fares
Hundreds of planes will almost certainly stay grounded, which will mean less capacity and higher fares. So now would be a wise time to book airfare, because those low or reasonable prices may not be there in a few months from now. Having fewer choices related to flights means that consumers will pay a higher fare for fewer options.
Before the 9/11 terrorist attack, there were nine major US airlines, after the attack mergers were made to combat defaulting airlines within the airline industry. Traffic finally bounced back in 2004, following the 2001 terrorist attacks. The nine airlines ended up merging into four remaining major carriers – American (AAL), United (UAL), Delta (DAL) and Southwest (LUV). With this being said, there could be a new round of mergers between airlines.
Things are looking even more disappointing at TSA. The number of passengers entering TSA screening points fell 93% between Tuesday and the last Tuesday of March in 2019. This percentage is huge compared to last year’s numbers. Only the strong will survive in this.
“In the near term, we’re going to see a shakeout,” said Joe Schwieterman, a transportation expert, and professor at DePaul University in Chicago. “The weaker players may not survive this. Most industry leaders are expecting a long, painful recovery.”See AlsoJoe Schwieterman
Home » Fewer Flights and Higher Fares after the COVID-19 Pandemic
Budget air carriers have the potential for losing the battle of continuing to make revenue due to the COVID-19 pandemic, and at the very least, drop out of markets where they don’t make much profit. Low-fare airlines moving out of certain markets will also limit the number of flights being offered to consumers.
But it’s virtually certain that passengers will have fewer choices even if none of the airlines merge or go out out business, as airlines respond to the new, lower traffic environment with smaller operations for the foreseeable future.
In short, there will be fewer options for flight routes and you’re going to be paying more. There is truly no getting around this.0
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Sole Founder & Editor-in-Chief of Melanin Voyage. Devoted to bringing #TravelTransparency to the masses. A professional blogger that provides support to aspiring professional bloggers. She loves brunch, travel, and art. Knowledgeable about pretty much anything travel & lifestyle.