It has been more than a year now since COVID-19 has been impacted the lives of people all over the world. Ever since it broke out, the population of the entire world has been impacted physically, mentally, financially, economically, or in any way on can think of. Ever since COVID-19 became a pandemic and hit the entire world, people from all over the world talk about its impact on human lives.
No one can deny the fact now that the pandemic has taken the lives of more than 3 million all over the world and has infected more than 100 million people. Although it is, the biggest deal if one gets infected with coronavirus, the recovery time at max would be 6 weeks, and one can get back to normal after that.
COVID-19’s Impact on Aviation Sector as per Israel Figa
Israel Figa, who is known globally for being one of the top analysts for the economic affairs, sheds some lights of COVID-19’s impact on one of the most common and widely used industry in the world. According to him, the recovery chances of a person infected by the COVID-19 are more than 85%, which means that after maximum 6 weeks, the person would be back to normal.
On the other hand, the impact on the Aviation industry similar to other related industries could be everlasting. When a person falls victim to COVID-19, it is his/her life on the line but when a person is without a source of income, it is that person’s entire family whose lives come at stake.
This is exactly what the Aviation sector is afraid it would end up facing in near future if the situation does not get back to normal in the coming months. Israel Figa stated that we need to look at the wider picture because due to the pandemic, travel bans were imposed, flights were cancelled, and this not only impacted the companies, but the people working in them. This has left millions of people without source of income and as the pandemic continues to linger, these people are unable to find jobs anywhere else either.
Israel Figa has discussed the losses that the Aviation industry has incurred ever since the pandemic’s outbreak and how much loss the industry would incur if situation does not normalize.
Losses Aviation and Related Industries Would Incur Due to COVID-19
According to Israel Figa, the number of passengers and the travelling percentage was reduced to less than half in 2020 of what was recorded in 2019. As the flight restrictions were imposed, aviation companies had no choice but to wait for the bans to be lifted.
As a result, not only the employees at aviation companies are impacted but the ones connected to the industry are as well. The aviation companies have contracts with companies such as catering suppliers, professional services, touring, and many more in order to serve their passengers. As the companies stopped flying planes, none of these companies could fully operate.
As per Israel Figa, if the travel bans are not lifted soon, then around 4.8 million aviation jobs will be impacted. If we count the rest of the industries linked with the aviation sector, then the employment figure rises to more than 40 million that would be at risk.
Impact on Global Economy Due to Aviation Sector’s Loss
According to Israel Figa, around 60% of the tourists from around the world travel to their touring destinations via planes. Because of the travel bans, the global aviation industry is experiencing enormous loss since 2020. In the year 2020 alone, the overall loss incurred by the entire aviation industry was more than $630 billion.
This would mean that for countries whose top source of revenue was tourism, had to face huge losses, which would eventually had a negative impact on their GDP. Some of the countries with huge revenues from tourism are USA, China, Thailand, Malaysia, Japan, France, and Italy.
From the last year, the figures show that the overall losses observed due to the pandemic in the tourism sector were between $950 billion to $1.1 trillion.