TAC Analysis updates its recovery forecast as travel sentiment points to growing momentum for business flying.
MC-21-310 first flight with PD-14 engines accelerates Russia's aerospace industry uncoupling with the west. Pratt & Whitney's involvement is "on life support" as U.S.-Russia relations continue to deteriorate. The first approved COVID-19 vaccine is fanning out across the world, kicking off what is possibly the largest humanitarian airlift in the history of aviation. The global effort requires a highly-coordinated logistical and operational dance. The second big wave of COVID-19 cases is causing an expected decline in air travel, but the overall recovery is ahead of forecast.
The connection between passenger traffic growth and new infections is mathematically meaningless.
As fall arrives, U.S. air traffic is still down 65%. Summer’s leisure travelers are receding at their anticipated seasonal pace, shifting the weight to fall business travel which has shown minimal recovery. This TAC Analysis expands our predictive sentiment model into the fall, illuminating the looming challenges for airlines in the coming months.
There are three steps to an airline industry recovery. First, airlines have to return capacity to the sky. Second, passengers need to fill those airplanes. Lastly, the fares those passengers pay must be economically sustainable. The industry has not yet reached the first step.
Log-in here if you’re already a subscriber Release DateMay 29, 2020Business travel lags leisure early in coronavirus air travel recoveryPurchase...
Log-in here if you’re already a subscriber Release DateMarch 31, 2020Confusion among U.S. airlines as airplanes fly virtually empty to...