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A Tale Of Two Markets

IATA Reports April Travel Demand – Domestic Recovery, International Stagnation

IATA reports that domestic travel demand improved in April 2021 compared to the previous month, however, it remained well below pre-pandemic levels. International passenger travel continued to be stalled in the face of government-imposed travel restrictions.

The global airline industry association notes that the comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, and unless otherwise noted all comparisons are to April 2019, which followed a normal demand pattern.

IATA reports that:

  • Total demand for air travel in April 2021 (measured in revenue passenger kilometers or RPKs) was down 65.4% compared to April 2019. That was an improvement over the 66.9% decline recorded in March 2021 versus March 2019. The better performance was driven by gains in most domestic markets.
  • International passenger demand in April was 87.3% below April 2019, little changed from the 87.8% decline recorded in March 2021 versus two years ago.
  • Total domestic demand was down 25.7% versus pre-crisis levels (April 2019), much improved over March 2021, when domestic traffic was down 31.6% versus the 2019 period. As with March, all markets except Brazil and India showed improvement compared to March 2021, with both China and Russia reporting traffic growth compared to pre-COVID-19 levels.

Willie Walsh, IATA’s director general, said that: “The continuing strong recovery in domestic markets tells us that when people are given the freedom to fly, they take advantage of it. Unfortunately, that freedom still does not exist in most international markets. When it does, I’m confident we will see a similar resurgence in demand.”

Walsh continued: “As we enter the peak summer travel season in the Northern Hemisphere, we know that many people want to enjoy their freedom to travel. But for that to happen safely and efficiently amid the COVID-19 crisis, a more targeted approach is needed. Most government policies today default to the closing of borders. After a year-and-a-half of COVID-19 there is sufficient data for governments to manage the risks of COVID-19 without blanket travel bans.”

IATA’s boss noted that: “We have, for example, strong indications from the US Centers for Disease Control and Prevention, the European Centre for Disease Control and Prevention, the Robert Koch Institute and others that vaccinated travelers pose very little risk to the local population. And data show that pre-departure testing largely removes the risk of unvaccinated travelers importing COVID. UK data confirm that about 98% of arriving passengers detained by universal quarantine orders left confinement with no signs of the disease.”

He pointed out that: “Last week we teamed-up with Airbus and Boeing to demonstrate potential methodologies to manage the risks of COVID-19 to keep populations safe while restarting global connectivity. Governments are naturally risk-averse, but successfully managing risk is aviation’s bread and butter.  With indications that COVID-19 is becoming endemic, governments and industry must work together to rebuild global connectivity while managing the associated risks. Leadership by the G7 to move in this direction would be a major step forward. Safely restoring travel freedom and reconnecting countries will drive economic growth and job creation.”

 

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