Impact of Covid-19 on Airline Industry

INTRODUCTION TO
AIRLINE INDUSTRY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Assessing the impact Covid-19 on airline industry.....................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Due to covid-19, countries are bound to banned their national boundaries for that they
cancelled all the aviation facilities. It leads aviation industry to shut down their operation, this
cause as financial loss long term impact on that. The present will provide deeper insight about
the extent to which Covid-19 affected airline industry of UK from several perspectives.
MAIN BODY
Assessing the impact Covid-19 on airline industry
In the context of airline industry, impact of Covid-19 can be presented in the following
way:
Operational function-
As COVID came in world, countries enforced to shut down their national boundaries, so
before announcement for lock down air root is closed, to stop people coming from outside of
country (Amankwah-Amoah, Khan and Osabutey, 2021). Due to this period reduction of more
than 85% traveling from air root is being find out from last year. This directly related to
operational function of airline this reduction reflect that business of airlines had fall and leads
them to make cost-cutting. In fact, popular Airline of UK 'British Airways' has decided to fire
approx 10,000 employees due to covid-19. Airline's way to generate cost in pandemic is carrier
facilities that are also very few at that time. It is because of people are more conservative about
product came out of their locality and focused on product that are necessary for life-hood. So
less import and export transaction are going that reduce the business from carrier facilities
provided by Airline sector.
Further, even after lock down airlines are not allowed to run with capacity more than
50%, so the expenses are as before and reduction in number of passenger's capacity that will
make airline to suffer with more losses. Due to pandemic they are not allowed to cross national
boundaries and after allowing they can't run with full strength, so operation function is more
difficult to perform. For example: British Airways planning to close or sale its 747 jumbo jets as
a result of travel restriction and less no. of passengers in some flight, the airways is operating
only with 25-30% capacity that can't be an enough to retrieve cost of flight. They are making
some profit at the end of 2020 and new strain COVID is founded in founded and once again they
need to shut down their operation and remain idle for more than one month.
1