Airlines as a ‘Complete Retailer’: Could the Pandemic Trigger a Real Transformation?

Everyone who works in aviation is told that it is a "cyclical" business. However, in the years up to 2019, there was an unprecedented long run of profits and general good news for aviation. 4.5bn passengers flew on commercial aircraft flights. Over 100,000 commercial flights happened each day. It was hard to see what event or series of events could bring that current cycle off its historic highs.

Along came the pandemic; everything came to a grinding halt.

Economies have started to open up again, and we are starting to see the size and the shape of the future for the airline industry. Forecasts now point to five years before we return to the level of demand that we had in 2019.

Alexandre de Juniac, IATA's Director General believe that there will be a longer recovery period and more pain for the airline industry: IATA believe that global passenger will not return to pre-COVID-19 levels until 2024, a year later than previously projected.

Predictions that passenger traffic will be depressed until 2024 point to a radically different market. Given this, major airlines are now questioning every aspect of their business. The unpredictability of future passenger demand is based on the question being asked by all people who wish to fly: "is flying safe for me to do?"