Airline revenues have dropped by 100% or more than 2019 for equivalent past 7 days

posted on 30th April 2020 by Eddie Saunders

COVID-19 continues its disruption of the global aviation industry. The restrictions placed by governments on air travel in an effort to help stop the spread of the virus are ongoing.

In the fourth week of Skytra’s COVID-19 coverage report they share the same COVID-19 related metrics which they have complemented by the Skytra Price Indices, which measure the average price of air travel per kilometer in the different markets around the world. They share two different views: first, they compare the price of air travel per kilometer in 2020 so far with the preceding three years, second, they look at how the ticket prices have changed each year from January 1st onwards.

Following weeks of falling prices it looks like average prices are stabilising or even rebounding in certain markets. Of course the radical cuts in capacity will be a contributing factor to this change as is the fact that average flight distances have decreased since the beginning of the crisis (the shorter a flight the higher the price per kilometer tends to be). Over the coming weeks travel restrictions may start to be lifted and operations could thus resume. It could well be that they will see more volatility on pricing as a new equilibrium of supply and demand is found.

As the previous week, our three specific COVID-19 metrics are as follows:

  • Value of tickets issued over the past week compared to the same week in 2019 and how this has evolved over the past three months as COVID-19 spread in different regions of the world.
  • Cumulative change in ticket revenue which helps to understand the effect of the shutdown as it continues.
  • Customer and airline sentiment for the upcoming months, so each week we can see how much travel is being booked for the rest of 2020

Skytra, a 100% Airbus company, has evaluated all these metrics using the Skytra Price Indices and methodology. These are derived from our ticketing database that includes IATA DDS (Direct Data Solutions) the most comprehensive source of airline ticketing information.