Effects of Covid-19 on Airlines: Supply and demand

Effects of Covid-19 on Airlines have caused monetary and social disturbance whereby many people have fallen into absolute poverty. Several airline companies have nearly bankrupted, and their workers are at risk of losing their jobs. Casual employees in the airline services, for example, the cleaners, are exceptionally vulnerable because many do not have social security and admission to adequate health care. With the reduction of workers because of the pandemic, many of them faced unemployment.

Supply and demand amidst covid-19

Covid-19 has an impact on the airlines’ supply and demand. There are many causes of supply and demand in the airline companies, for instance, the fuel price directly affects the demand for the tickets, which means that when the fuel price goes up, the ticket fee goes up. Covid-19 has become a significant fact in the airlines’ supply and demand; due to pandemic, the airline business’s demand has dramatically gone down. Airlines have grounded many aircraft all over the world because the demand for passengers has gone down due to governments’ restrictions on the movement of people. It has not only affected the airlines but has also affected the whole supply chain that is concerned with the supply of aircrafts equipment such as airplanes spare parts and maintenance equipment’s because the majority of airplanes have been grounded due to low demand hence no supply of maintenance services required (Goodell, 2020).

Aviation and covid-19

Aviation provides the only rapid worldwide transportation network, which makes it essential for global business. It generates economic growth, creates jobs, and facilitates  international trade and tourism. The covid-19 situation has messed the air transport by a big margin.


The air transport industry supports a total of 65.5  million jobs globally. It provides 10.2 million direct jobs.  Airlines, air navigation service providers and airports directly employs around three and a half million people. The covid-19 situation has led to retrenchment of most of them. This shows how the effects of Covid-19 on Airlines are far reaching. The civil  aerospace sector (the manufacture of aircraft, systems and  engines) employs 1.2 million people. A further 5.6 million people work in other on-airport positions. Another 55.3 million indirect, induced and tourism-related jobs are supported  by aviation.
order now with paypal
Powered by WordPress