PHL air travel demand falls 49% in 2020 than 2019 amid coronavirus pandemic

Passenger demand in the Philippines has fallen by 49% this year as compared to that of the same period in 2019, a report from Asian Aviation shows.

This translates to a loss of 29,880,000 passengers and a revenue impact of  US$ 4.63B in 2020 compared to 2019.

Conrad Clifford, regional vice president for Asia Pacific of IATA said, 2020 is the worst year in aviation history and airlines are in survival mode. The carriers in Asia-Pacific will experience the largest losses at US$29 billion. That’s a loss of US$30.09 per passenger. In this bleak outlook, the priority is for the region’s governments to facilitate the restart of air connectivity in line with the International Civil Aviation Organisation’s Take-off guidance and principles."

“It will take a few years for the industry to get back to 2019 levels of activity. In the interim, governments will need to continue providing financial relief and assistance to airlines as well as flexibility in slot usage. We are also working with airports and air navigation service providers to identify areas of cooperation with a view to reducing costs for airlines,” Clifford continued.

Government assistance needed as 570k jobs may be affected

According to the IATA, 569,800 jobs directly and indirectly involved in the aviation industry may be affected if government does not help the airlines in the Philippines.

The Air Carriers Association of the Philippines (ACAP) member airlines which include Philippine Airlines (PAL), Cebu Pacific, and Philippines AirAsia, are awaiting the passage of the proposed P1.3-trillion stimulus package called the ARISE (Accelerated Recovery and Investments Stimulus for the Economy) bill, which would allocate around P70 billion in assistance to the transportation sector this year.
According to ACAP executive director and vice-chairman Roberto Lim, the funds would cover P1.3 billion for wage subsidy, P500 million for payment of fees, and P6.8 billion for working capital.

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