Bain air travel forecast predicts Asia region bounce back
While vaccine rollouts across the globe in 2020 raised hopes of an air traffic rebound, that has failed to materialise according to the latest insight from consultants Bain.
Bain publishes monthly updates on the state of the commercial air travel industry and it currently makes depressing reading for airlines, with revenue in 2021 predicted to remain flat and around the same level as 2020.
Regionally, Asia is predicted to show greater recovery, as China especially rebounds after Covid-19 lockdowns curbed air traffic. Bain predicts that China air traffic will return to 100% of July 2019 volume by July 2022. Indonesia will bounce back to 85%, South Korea 75%, Japan 68%, India 56% and Australia 54%. Putting those figures into a global content, the EU as a whole is expected to return to 79% of July 2019 volumes by July 2022, and the United States to 83%
The report states that projected global revenue in the baseline recovery scenario outlined above continues to fall – by an additional US$5 billion to just US$230 billion in total. That represents just 34% of total revenue from 2019. In 2020, that figure was 33%.
In Europe, the recovery has flattened since the summer, but Bain analysts predict slight improvement as travel restrictions continue to loosen, such as in the UK. However, the situation in Europe is unpredictable with some countries entering new lockdowns as cases surge.
The US’s recent reopening to vaccinated international travellers should also boost global air travel, according to Bain.
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