Grim Summer Turns to Long Cold Winter for European Airlines as Passenger Traffic Dives Again | Wolf Street

In the first two weeks of September, air traffic was down 53% compared to the same period in 2019. Intra-Europe flow remains 50% down compared to 2019 while all other flows are down 70%. Passenger traffic has also started to fall from the dismally low levels in mid-August, with almost all major airports reporting a decrease: Madrid was down 16% from mid-August, Barcelona and Paris 14%, Athens 13%, Paris CDG 12%, Amsterdam 9%, London/Heathrow 7%, Frankfurt 6%, and Munich 5% from mid-August.

They are many reasons why this is happening. As the International Air Travel Association (IATA) says, “stop-start quarantines are having much the same effect as lockdowns”, dissuading potential travelers from boarding a plane. Many people are choosing not to fly anyway, often out of fear of catching the virus. According to the U.S. Center for Disease Control, as many as 11,000 people may have been infected with the coronavirus on flights. Weak consumer confidence, unemployment, and surging business closures are also taking their toll.

Another major problem for the industry is the collapse of the premium market (first and business class combined), which last year generated 30% of airlines’ international revenues. Many businesses right now will not send workers half way across the globe for a meeting that can be done remotely, at a tiny fraction of the cost and with none of the risk attached. Also, premium travel has lost some of its allure as many of its perks have been traded away for safety.

Grim Summer Turns to Long Cold Winter for European Airlines as Passenger Traffic Dives Again | Wolf Street