Coronavirus Pandemic and Airline Industry: Between Facts and Prospects

The 2019 coronavirus pandemic has disrupted the business environment from all the sectors. One of the first and worst affected was tourism, in general, and airline industry, in particular. The purpose of this study is to investigate the short-term effects of coronavirus pandemic on the airline industry and the potential recovery pathways. Using an empirical approach based on the secondary data investigation, we found out that, during 2020, both airlines and airports confronted with ratings’ downgrades or even bankruptcy due to the severe cash burn generated by travel restrictions. To cope with the crisis, the most common measures taken by the airlines were rationalizing the fleet, reducing staff numbers and reconfiguring their networks and capacity. In the beginning of 2021, there are signs that the industry is recovering, but the process is very slow. Meanwhile, many governments gave a high priority to the air transport industry, to protect not only the aviation itself but also the related sectors.JEL classification: O5, R4, Z