Covid-19: Impacts on Revenue allocation

The covid-19 pandemic has affected government policies to revenue allocation. The government has put more efforts and resources in the medical sector, neglecting other major sectors airline industry being one. Nations with assets and high modern technology levels have significantly increased their inventions to raise health standards. Many third world countries have been forced to direct most of their resources to purchase modern equipment to fight the spread of covid-19 pandemic. This has lead to increase in the buying and selling of medical equipment needed in health facilities.

Government measures

Covid-19 pandemic has affected the labor force in the airline services . Governments worldwide have put in measures to stop the spread of Covid-19. This measures has contributed significantly to unemployment. Due to restrictions and prohibition of movement, many airlines have been closed, resulting in unemployment. The covid-19 pandemic have affected the demand of goods and services, making the airline reduce the workforce or even delay the salaries to cover for losses that have been incurred. Further, to reduce the cost as low as possible, the airline services opt to reduce the number of workers.

Reduction of revenue collection

The Covid-19 pandemic has affected the passenger traffic and revenues in the airlines. Covid-19 has minimized the number of people traveling around the world. World Health Organization declared Covid -19 a pandemic crisis .This led to disruption of airline operations. Governments restricted movements in and out of countries with an aim of containing the virus. The fall in the number of passengers had a severe impact on airline services revenue. As the capacity reduced, the airlines revenues also reduced. There have been reduction of the fees collected from the tickets, parking fee landing charges and the money charged in the restaurants within the airport.

Incurred extra costs

The Covid-19 pandemic has raised the cost of airline services. The new health measure put in place has significantly increased the prices of using airline services, that is, health matters are prohibitive. Moreover, Airline industries are incurring high costs in implementing healthy safety measures required. For instance, the temperature checks at all entrances, sanitizers or viral tests are expensive.


order now with paypal
Powered by WordPress