FRANKFURT, Germany -- Global air travel is recovering more slowly than expected and will take until until 2024 to return to pre-pandemic levels, the trade association for the airline industry said Tuesday.
The International Air Transport Association pushed back its prediction by one year due to the slow containment of the outbreak in the U.S. and developing countries.
The industry is seeing a rebound from the depths of the shutdowns in April, but the bad new is that any increase “is barely visible,” IATA chief economist Brian Pearce said Tuesday during an online briefing for journalists.
Pearce said that air travel is not rebounding along with rising levels of business confidence in Europe, the U.S. and China. Traffic was down 86.5% in June from the same month a year ago, compared with a drop of 94.1% in April, measured as revenue passenger kilometers, or the distance travelled by all revenue-generating passengers.
That improvement is “nowhere near the increase in business confidence,” Pearce said. China is bouncing back more than some other places, while an upturn in the U.S. has been knocked back by the recent upsurge in COVID-19 cases in a number of states.
Besides renewed outbreaks, travel is also being held back by weak consumer confidence and constrained travel budgets at companies that are struggling.
The head of the Robert Koch Institute there expressed concern over the rise in cases. Germany issued a travel warning for three regions in Spain and the U.K. has imposed a 14-day quarantine for travellers returning from Spain, a popular holiday destination.