Impact on the Aeronautical Industry product of the propagation of COVID-19.

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No economic sector has remained immune to the spread of COVID-19, popularly known as Coronavirus. However, none have suffered as much as the aeronautical sector.

Being one of the most used transportation methods among the world population, aviation transports millions of people a year from one place to another. However, since February we have seen an exponential decline in air traffic globally, as well as massive flight cancellations, as a result of the recently declared pandemic by the World Health Organization (WHO). Flight bookings for the month of March were down 50%, for April 40% and for May 25%. In that order, so far there are 420,000 flights canceled worldwide (until June 30), for an estimated loss of more than 113 billion dollars.

In order to prevent the spread of the virus, most countries that have presented cases of Coronavirus have decided to close their borders indefinitely. For example, the Spanish Council of Ministers prohibited direct flights from Italy (one of the countries most affected by the pandemic), as an extraordinary measure to contain the spread of the virus. This measure will be in force until March 25. In Latin America, countries like Argentina, Panama and the Dominican Republic have ordered the suspension of international flights for up to 30 days.

Without a doubt, both the pandemic and the measures taken as a result of its spread will cause an unprecedented impact on an industry that, worldwide, produces around 66 million jobs and contributes around 2.7 trillion dollars to the global economy. The 10 countries most affected by the pandemic are:

1. China;

2. Spain;

3. United Kingdom;

4. France;

5. Germany;

6. South Korea;

7. Italy;

8. Holland;

9. Switzerland; and

10. Belgium.

The PELLERANO NADAL team is available to clarify any questions you may have in relation to this and other measures implemented by our authorities.