Impact of COVID – 19 on the Aviation Industry

COVID-19 pandemic is having an enormous impact on the aviation industry, affecting passenger traffic, air cargo demand, airport workforce, and incoming revenues. 

The coronavirus pandemic has grounded activities in the aviation industry across the world, about 90% of the world’s citizens have been restricted from traveling, either to return home or to travel to destinations of their choice. 

the pandemic affected a lot of people in the world most especially travel & tourism in the aviation industry, an estimated 25 million aviation jobs and 100 million travel and tourism jobs across the globe are at risk. That is not all; the growth recorded in the industry in the last seven years would potentially be lost across the world.

In Nigeria the aviation Industry, has been contributing billions to the Gross Domestic Product (GDP) within the past years they have recorded the fastest growth in activities compared to other transportation sub-industries and this the outbreak has made the aviation industry lost N21 Billion Monthly.

In March 2020 when Nigeria recorded its first patient of the COVID-19 Government shut all international and Local airports, this has made the closure of all the airports within the country, most of the local airlines have either forced their workers to embark on unpaid leave slashed salaries or dismissed their workers. This is how Coronavirus (COVID-19) has brought the global and Nigerian aviation to a standstill. 

COVID 19 has made a huge impact in the Nigerian aviation industry which are:-

• This has increased the aviation industry debt profile: International Air Transportation Association (IATA) recently stated that air travel industry would lose about US$113 billion making the industry debt to USD 550 billion by end of this year. 
• Postponement and cancellation of events: The aviation industry, tourism industry, hotel businesses, and international events worth billions have been postponed or canceled due to the pandemic. 
• Increased competitive pricing: With this pandemic, the effect of competition on fares would be more pronounced. 
• Loss of jobs (Staff Cuts): Globally, an estimated 25 million aviation jobs and 100 million travel and tourism jobs across the globe are at risk. Phillips Consulting (2015) has noted that the aviation industry supports 254,500 jobs in Nigeria and contributes US$940 million (N184.7 billion) to national GDP. These quarters of a million jobs are presently at risk now in Nigeria due to the continuous closure of the airports.
• Severe reduction of fleets: Due to their inability to meet their financial obligations, there will be a strong reduction of aircraft operating together under the same ownership few.
• Quickened closure of unprofitable subsidiaries: there will be increased closure of aircraft as many operators may be unable to fund the routine maintenance checks on their aircraft to enable them to recommence operations. 
• Adjustments to security measures and sluggish demand.