The aviation sector is still affected by the COVID-19 responses to fight the virus as additional waves appear even a year and a half after the pandemic was declared. Hundreds of thousands of cases are recorded worldwide; yet, highly efficient vaccines have begun to pave the way out of a cycle of restrictions. Vaccines are highly encouraged to achieve smooth domestic and international transportation as it also lowers the barriers to economic activities.
Whenever travel restrictions are lifted, transportations recover quickly. This has been the case for China, Russia, United States, and Europe. In the second quarter of 2021, the global economy recovered to pre-crisis levels of gross domestic product (GDP). Consumers from developed economies are eager to spend the money they saved during the quarantine while many prohibited activities are being imposed. Thus, the governments both the monetary and fiscal sides continue to be supportive.
After the second quarter of 2021, nations having an account of more than 50% of the global GDP are expected to increase around 80% by the fourth quarter of 2019. Regional differences continue to exist and a link to vaccine rollout speed and depth is visible. Due to the vaccines being widely available, advanced economies have begun to reopen. Despite the hurdles and longer schedules, they are accelerating most vaccine programs.
As a result of this development, ongoing COVID-19 outbreaks continue due to COVID variants. While there will be long-term effects on the economy and some friction in resource allocation throughout the recovery, they are not nearly as disruptive as what occurred during the global financial crisis. Some changes implemented during the pandemic such as widespread and quick adoption of technology may boost overall productivity.
It is critical not to lose sight of the economic fundamentals to maintain the long-term outlook. Even while COVID-19 countermeasures are currently the primary barrier to aviation travel, they remain as critical drivers.
GDP will increase by 15% in 2025 as compared to 2019, and GDP per capita will have increased by roughly 10% – expecting more economic activity and increased worldwide earnings. Increased connectivity and involvement are necessary for this global economy, resulting in traffic growth to its long-term trend.
