Impacts of the global pandemic on the aviation industry of the European Union

Abstract

Research background: With the onset of the Covid-19 pandemic, there has been a complete collapse in demand in global markets due to restrictions on movement and market paralysis. Among the sectors most significantly affected is tourism, which is predominantly dependent on the movement of clients. The performance of the tourism industry fell to a minimum during the pandemic. Restaurants and accommodation facilities were closed almost overnight by government intervention. The restriction of free movement has also forced airlines to curb their activities. These companies can be considered as an important globalization element, enabling travel to distant destinations. Purpose of the article: The article deals with the effects of the pandemic on European Union airlines, as well as the tools adopted to restore air traffic. Based on the analysis, the development of transport flows in air transport before and during the pandemic was evaluated. Furthermore, tools and measures taken to stimulate air services were analyzed and models of possible impacts on the EU aviation industry and selected economic factors were predicted. Methods: Basic mathematical and statistical methods, correlation analysis, comparisons and predictions were used for the analysis. Findings & Value added: The situation brings problems associated with redundancies, i.e. rising unemployment, declining GDP, falling stock markets or airline bankruptcies as in the case of the British Flybe. Based on 2019 data, it can be estimated that in the period March-June 2020, the demand for EU27 passenger air transport decreased by approximately 100 million passengers.