The Briefing
- In the spring of 2020, two-thirds of the world’s passenger jets were grounded
- Lockdowns and travel restrictions have had a significant impact on commercial air travel—for 2020, the industry reported an estimated net loss of $118.5 billion
One Year In: Air Travel Plummeted during COVID-19 Pandemic
It’s no surprise that the commercial air travel industry took a hit in 2020, given the pandemic-induced travel restrictions that began early last year.
However, it’s worth noting the sheer magnitude of the situation—according to IATA, COVID-19 was the most drastic hit to the industry since World War II.
Low Air Travel, Steep Losses
To measure air traffic, IATA uses the industry-wide metric revenue passenger kilometers (RPK). RPK is calculated by taking the number of revenue-paying passengers, and multiplying that by the total distance traveled.
In 2020 as a whole, RPK dropped by 66%—the steepest yearly decline in aviation history. As a result, the global aviation industry reported an estimated net loss of $118.5 billion.
International vs. Domestic
International air travel was hit a lot harder than domestic travel—in 2020, RPK for the worldwide international market fell 75.6%. In April, when strict lockdowns limited travel the most, international RPK was down 98% year-over-year.
In contrast, domestic only dropped by 48.8% in 2020 as a whole.
In terms of regional markets, Asia Pacific saw the largest decrease in RPK, with a decrease of more than 80%.
| International Market | RPK for 2020 (% year-on-year) |
|---|---|
| Africa | -69.8% |
| Asia Pacific | -80.3% |
| Europe | -73.7% |
| Latin America | -71.8% |
| Middle East | -72.9% |
| North America | -75.4% |
On the domestic side of things, Australia saw one of the steepest drops in RPK, at 69.5%. This makes sense, given the country’s relatively strict COVID-19 restrictions and regional lockdowns.
| Domestic Market | RPK for 2020 (% year-on-year) |
|---|---|
| 🇦🇺 Australia | -69.5% |
| 🇧🇷 Brazil | -49.0% |
| 🇨🇳 China | -30.8% |
| 🇮🇳 India | -55.6% |
| 🇯🇵 Japan | -53.6% |
| 🇷🇺 Russia | -23.5% |
| 🇺🇲 U.S. | -59.6% |
Note: These domestic passenger markets accounted for 46% of global total RPKs and approximately 84% of total domestic RPKs in 2020
The Future Looks Bright
While 2020 was a tough year, the future of aviation looks promising.
For example, China’s domestic market showed a negative correlation between new COVID-cases and RPK. When cases were down, RPK increased drastically, showing that there’s pent-up demand.
So once the virus is eradicated and restrictions are lifted, IATA expects flight activity worldwide to bounce back, as they did in China.
» Want to learn more? Check out our COVID-19 information hub to help put the past year into perspective
Where does this data come from?
Source: IATA December 2020 Report
