COVID-19: Global cases exceed one million: CAPA update 03-Apr-2020

IATA: Global international pax down 10% in Feb-2020, as COVID-19 started to impact

2. Asia

CAAC reported (02-Apr-2020) China's daily frequencies averaged 6533 in Mar-2020, an increase of 20.5% compared to Feb-2020, but this was still only at 42% of the pre coronavirus level.

The majority of increased domestic demand was in regions where the labour force is relatively concentrated, such as the southwest, northwest and coastal areas. As of 01-Apr-2020, airlines have arranged more than 970 frequencies to transport 59,000 passengers to resume their work. [more - original PR - Chinese]

Moody's Investors Service reported (02-Apr-2020) Australian airport revenues will decline materially in 2020 due to coronavirus related disruptions, namely the government led containment measures that have resulted in airlines cutting capacity. Moody's Investors Service reported passenger volumes will decline sharply in 2020, driving a material fall in revenues, and airports are aggressively implementing countermeasures to protect their credit profiles.

Moody's expects a gradual recovery in revenues starting in 3Q2020, driven by supportive fiscal and monetary policy measure. Moody's is cautious about the pace of recovery as governments may retain travel restrictions and consumers may be wary of, or not have the financial capacity to return to pre-coronavirus levels of travel, however reported Australia's airports generally have adequate liquidity and are owned by well funded and well aligned investors with long term investment horizons. [more - original PR]

IATA: Middle East and Africa carriers to lose USD23bn in revenue due to coronavirus

IATA urged (01-Apr-2020) governments in the Middle East and Africa to provide financial relief to airlines as the latest IATA scenario for potential revenue loss by carriers reched USD19 billion for the Middle East and USD4 billion for Africa. This translates to a drop in industry revenues of 32% year-on-year for Africa and 39% for the Middle East for 2020. Impacts at a national level include:

• Saudi Arabia: 26.7 million fewer passengers resulting in a USD5.6 billion in revenue loss, risking 217,570 jobs and USD13.6 billion in contribution to Saudi Arabia's economy;
• UAE: 23.8 million fewer passengers resulting in a USD5.36 billion revenue loss, risking 287,863 jobs and USD17.7 billion in contribution to the UAE's economy;
• Egypt: 9.5 million fewer passengers resulting in a USD1.6 billion revenue loss, risking almost 205,560 jobs and around USD2.4 billion in contribution to the Egyptian economy;
• Qatar: 3.6 million fewer passengers resulting in a USD1.32 billion revenue loss, risking 53,640 jobs and USD2.1 billion in contribution to Qatar's economy;
• Jordan: 2.8 million fewer passengers resulting in a USD0.5 billion revenue loss, risking 26,400 jobs and USD0.8 billion in contribution to Jordan's economy;
• South Africa: 10.7 million fewer passengers resulting in a USD2.29 billion revenue loss, risking 186,850 jobs and USD3.8 billion in contribution to South Africa's economy;
• Nigeria: 3.5 million fewer passengers resulting in a USD0.76 billion revenue loss, risking 91,380 jobs and USD0.65 billion in contribution to Nigeria's economy;
• Ethiopia: 1.6 million fewer passengers resulting in a USD0.3billion revenue loss, risking 327,062 jobs and USD1.2 billion in contribution to Ethiopia's economy;
• Kenya: 2.5 million fewer passengers resulting in a USD0.54 billion revenue loss, risking 137,965 jobs and USD1.1 billion in contribution to Kenya's economy. [more - original PR]

Southwest Airlines to apply for US Government grants under CARES Act

Why Australia needs Virgin Australia to survive

Australia is fortunate in being able to boast perhaps the most efficient and best managed airline in the world. Qantas is by many measures a leader - in establishing the highly successful dual brand, with Jetstar, in its international strategy, an unmatched frequent flyer programme and data aggregation capability, a powerful distribution strategy….the list goes on. And it has a remarkably strong balance sheet, with provisions made to weather a long storm.

Qantas also dominates the Australian domestic air services market at all levels, owning more than two thirds of it, and much more in some pockets.

That includes regional markets, tourism markets and, above all the almost AUD10 billion corporate market, where it holds about a 90% share.

Internationally it also has a selection of valuable routes, such as the US, as well as very strong airline partnerships.

In those circumstances, does Australia need a strong second airline? Should Virgin Australia be bailed out?

When the General Manager of Atlanta Hartsfield-Jackson International Airport, the world's busiest, reports an 85% year-on-year decline in passengers since the coronavirus outbreak, says revenue could be down by 50% or more, and that the airport normally services 26,000 flights per day but it has decreased to 1200, and "those flights are mostly empty"- you know that the aviation industry has a big problem.

But at the other end of the scale from Atlanta, in the world's small island states, particularly remote ones, for which air travel is an absolute necessity, it is much more of a problem.

Broadly 25% of all independent nations are island countries.

This report looks at a selection of those states and airports, and at how they have been impacted by the COVID-19 outbreak.