COVID-19 and Implications for the Aviation Sector: A Global Perspective

Abstract

In recent years we have witnessed several disasters and extreme events that have carried a variety of negative socioeconomic and environmental impacts. These events and disasters threaten the attainment of the ambitious targets outlined in the 2030 Agenda for Sustainable Development. While intense tropical cyclones, extreme floods, fires, droughts and record polar ice melting characterised 2019, the year 2020 ushered in COVID-19, a global pandemic that has left a trail of untold suffering and economic disruption. Although the pandemic is known to have shaken citizens around the globe, to date, there is very little knowledge of how this has affected various economic sectors. Nevertheless, the tourism industry appears to have suffered a serious blow. This study investigated how one subsector of tourism, namely, aviation, was affected by and responded to the COVID-19 pandemic. Using critical document analysis , the study found that the aviation sector was brought to a halt, costing billions of dollars in losses around the world. COVID-19 also resulted in job losses along the entire aviation industry's value chain and in related sectors; these were due to losses in passenger revenue, cargo revenue, air ticket refunds, fixed costs and increased parking fees for grounded aircraft, among other things. The study identified various strategies that were used to provide relief, including private and public funding through bailouts, tax deferment, waiver of individual taxes, provision of grants and low-interest loans. They also recommend additional documentation of impacts as they continue unfolding, thus providing valuable lessons for handling any future disasters.