TL;DR (2-minute read)
- There is a new variant of COVID called the Delta Variant which has damaged the Airline business.
- Many airlines have suffered due to the lack of flights and passengers because of COVID or COVID restrictions, especially in international travel.
- Airlines have responded by preparing themselves for another doomsday scenario like that of 2020 by properly staffing their flights in order to increase the number of flights.
What has/will be the Consequences of the Delta Variant on the Air Industry?
While not currently impacting the air industry , the Delta variant is starting to pose a larger threat to the $686 billion dollar industry. This is evidenced by Frontier Airlines’ quarter projection decreasing from a profit to breaking even, an ominous sign for the newly-public company as a result of a decrease in bookings. Furthermore, flights have been canceled en masse due to the delta variant and the lack of staff caused by the mass layoffs by airlines around the first lockdown of 2020. This has led to an overall decrease in profit for airlines. In all, the airline industry’s profit and income will take a major hit due to the Delta variant, which has prompted fear among travelers and forced governments to reimplement travel restrictions, which affects profits of airlines.
How have Airlines Responded?
Airlines have responded in different ways. American Airlines has recalled many staff from a long term leave, Delta Airlines’ has expressed concern over the new travel regulations and implied Airlines have responded in different ways. American Airlines has recalled many staff from a long term leave, Delta Airlines’ has expressed concern over the new travel regulations and implied that profit will go down due to the lack of international flights which are often the most expensive and profitable flights. Many airlines have braced for severe impact as projections indicate a cruel future for airlines unless the delta variant is contained with. The Delta variant will have a wide ranging negative impact on the airline industry comparable to the first lockdown of 2020.