There must be something we can learn from enduring such a monumental experience, right? It appears that the pandemic has paved way for a “new normal” which includes lifestyle concepts such as remote work environments and an expansion in online shopping leading to the revolution in e-commerce. The decline in cargo flights wasn’t what one expected to see because of the strides retailers such as Amazon and Walmart were making in preparation for such a pandemic. However, companies need time to pivot as do airline carriers such as American and Emirates. There is bound to be lag time associated with making drastic changes in a business model, so it will be imperative that companies account for that going forward. Additionally, airline operators may find it in their best interest to incentivize fliers to return with the implementation of new loyalty programs. The rolling out of incentives and persuasive marketing deployments would sway reluctant travelers enough to increase the rate at which the market returns to normal levels.
In mid-March 2020, there was a dramatic drop in passenger air travel worldwide due to the spread of COVID-19. Cargo, on the other hand, also sustained a dip at the same time which was nearly 3x less than commercial. The blows were more heavy to passenger travel as opposed to cargo because of the initiation of lockdowns and bans restricting international travel across the globe. All airlines are expected to report losses once again in the first quarter of 2021, after a combined $32 billion in losses in 2020.
