How Airlines can Look to Recover from the COVID Pandemic

  • How airlines were effected by the COVID pandemic
  • How lowering prices and increasing cabin size can help bring revenues back up

Airlines were devastated during the COVID-19 pandemic, hitting an industry revenue of $328 billion, which is only 40% of the previous years. Airlines are expecting to not be at 100% profits again until 3 years from now. Besides from the short term effects of COVID on airlines such as revenues, long term hygiene and safety practices will become more stringent for many years to come. Travelers will have to make sure they have COVID-19 test results with them before all flights. 

There are ways in which Airlines will see recovery quickly once the pandemic comes to an end. People are starting to feel more comfortable with air travel, so leisure trips to see friends and relatives will be the first step in airline recovery. Therefore, we expect that as the pandemic subsides, the rise in leisure trips will outpace the recovery of business travel. Another way airlines could start to recover is by using different pricing logic. Narrowing the gap between nonstop pricing and connecting flights pricing may be needed to persuade people to buy flights. Also, airlines should look into reconfiguring the layout of their cabins to address the increased share of leisure traffic. Travel will become greener and more efficient, and people are itching to travel again for holidays. Taking steps now will help airlines thrive in these tough times.


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