Sector struggles with.manpower shortage and high fuel prices as passengers return
Global aviation has experienced a promising start to the year as travel restrictions have been lifted, allowing people to fly with fewer barriers.
Even countries with strict Covid-19 policies, such as China, lifted their restrictions earlier than expected.
The World Tourism Organization predicts Europe and the Middle East will reach pre-pandemic international tourist levels this year, forecasting an 80-95% overall recovery, while the Pacific Asia Travel Association projects a growth rate of at least 71%.
Yet the aviation industry faces a manpower shortage as demand for air travel surges, while seat capacity remains limited. This has resulted in a significant increase in airfares as supply struggles to keep up with pent-up demand from eager travellers.
WHAT ARE THE MAIN REASONS FOR THE COSTLIER TICKETS?
In 2020, Covid-19 travel restrictions caused massive damage to the aviation industry, resulting in airline bankruptcies and widespread layoffs.
An estimated two-thirds of passenger airplanes remained grounded at airports and desert yards during the pandemic’s first year.
As of June 2022, the global airline fleet totalled 28,674 planes, with 5,161 still grounded, mainly in Asia, according to airline data provider ch-aviation.
China’s closure, while other countries in the region reopened in the second half of last year, contributed to Asia’s grounded fleet of 2,338 jets, representing 23% of the region’s total fleet of 10,014 recorded in June 2022.
According to the International Air Transport Association (IATA), global air passenger traffic in 2022 recovered to 68.5% of the 2019 level, up from 41.7% in 2021.
Philip Goh, regional vice-president for Asia-Pacific at IATA, said pent-up demand would keep growing rapidly, which naturally pushes up prices.
He said the spike in passenger airfares resembles the high price of cargo services during the three-year pandemic, when limited supply could not match demand.
Mr Goh said higher jet fuel prices also contributed to soaring ticket prices.
Source: Bangkok Post
