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6-May-2020 1:15 PM

IATA: Social distancing measures on aircraft would fundamentally shift the economics of aviation

IATA stated (05-May-2020) that calls for social distancing measures on aircraft would "fundamentally shift the economics of aviation" by lowering the maximum load factor to 62%. That is well below the average industry breakeven load factor of 77%. This would produce a sharp rise in unit costs, which would require a 33% to 58% increase in airfares to break even, compared to a 2019 baseline. Key regional forecasts are:

  • Africa & Middle East:
    • Break even load factor: 75%;
    • Average fare: USD181;
    • Average fare with social distancing: USD259;
    • Increase: +43%;
  • Asia Pacific:
    • Break even load factor: 81%;
    • Average fare: USD141;
    • Average fare with social distancing: USD217;
    • Increase: +54%;
  • Europe:
    • Break even load factor: 79%;
    • Average fare: USD135;
    • Average fare with social distancing: USD201;
    • Increase: +49%;
  • Latin America:
    • Break even load factor: 79%;
    • Average fare: USD146;
    • Average fare with social distancing: USD219;
    • Increase: +50%;
  • North America:
    • Break even load factor: 75%;
    • Average fare: USD202;
    • Average fare with social distancing: USD289;
    • Increase: +43%;
  • North Asia:
    • Break even load factor: 76%;
    • Average fare: USD135:
    • Average fare with social distancing: USD195;
    • Increase: +45%. [more - original PR]

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