Aviation recovery post Covid hits air pocket

The Covid-19 pandemic has triggered one of the worst jobs crises since the great depression. There is a real danger that the crisis will increase poverty and widen inequalities, with the impact felt for years to come. Countries now need to do everything they can to stop this jobs crisis from turning into a social crisis. Reconstructing a better and more resilient labour market is an essential investment in the future and in future generations.

The aviation industry supports 87.7 million jobs around the world, either directly within the industry or, supported through the industry's supply chain, employees' spending and in the aviation-enabled tourism sector.

4.8 million direct aviation jobs were lost due to Covid-19 impact (a 43 per cent reduction from pre-Covid levels). Air transport was not only impacted by Covid-19, it also responded to the needs of countries and citizens across the world: 34,600 special registration flights by airlines transported over five million citizens to their homes after borders were closed around the world in March 2020.

39,800 special cargo flights transported some 1.4 million tonnes of cargo, mostly medical equipment, to areas in need during the height of the pandemic response. In India approximately 10 per cent of the jobs in the Indian aviation sector were lost between April 2020 and December 2021 amid the Covid-19 pandemic, Minister of State for Civil Aviation VK Singh said. The job loss is around 10 per cent of the total jobs (around 1.9 lakh) in these sectors, he added.

Total number of employees in air cargo sector has increased from around 9,600 as on March 31, 2020, to around 10,500 as on December 31, 2021, he stated. The total number of employees working with airlines in India reduced from 74,800 as on March 31, 2020, to 65,700 as on December 31, 2021, he noted.

As on March 31, 2020, the number of employees working with Indian airport operators was 73,400. This reduced to 65,700 by December 31, 2021, Singh said. Employee strength at ground handling agencies has reduced from 30,800 in April 2020 to 27,600 in December 2021.

A major question facing the aviation industry is when demand will return. For passenger recovery, estimates range from early 2022 to 2024 and beyond. For pilots, however, demand is driven by aircraft departures and utilization rather than passengers. The global in-service fleet has already recovered in size to 76 per cent of pre-Covid levels.

Covid has created a long list of challenges never seen before in modern commercial aviation. It will take the next few years to adjust the fleet to the new realities and return to stable growth. Even after 10 years, the industry will not have fully regained all that it has lost with the pandemic.