Published on : Wednesday, March 2, 2022
The International Air Transport Association (IATA) warns that European countries will be affected by the Ukraine war, especially the neighbouring countries.
According to the authority, the impact on airline costs, more specifically frequent changes in energy prices or airlines avoiding the Russian airspaces, can affect the 27-nation-bloc.
The situation will more likely impact consumer confidence in travel and economic activity.
Such a statement correlates with the fact that Russia was the 11th largest market for air transport services regarding passenger numbers and its large domestic market, while Ukraine ranked 48.
With sanctions imposed, the largest country in the world can expect plunging figures in all industries, including travel and tourism.
How the War in Ukraine Affects the EU Migration Situation?
However, the authority foresees a strong recovery of travelling activity internationally but warns that not all markets and regions will recover equally.
In general, we are moving in the right direction, but there are some concerns. Asia-Pacific is the laggard of the recovery.
While Australia and New Zealand have announced measures to reconnect with the world, China is showing no signs of relaxing its zero-COVID strategy.
The resulting localized lock-downs in its domestic market are depressing global passenger numbers even as other major markets like the US are largely back to normal, IATA’s Director-General, Willie Walsh, said.
The authority also points out that the intra-Europe market is expected to benefit from passenger preferences for short-haul travel, which can help travellers’ confidence to rebuild. European in and outbound travellers can expect increasing harmonized and restriction-free movement within the Union.
Moreover, data from IATA shows that the European travel sector will recover, reaching from 40 per cent of its capacity in 2021 to 86 per cent in 2022 and 96 per cent in 2023.
However, the industry will reach its peak in 2024 and 2025 when it is foreseen that pre-pandemic levels will be surpassed with 105 per cent and 111 per cent, respectively.
The European travel sector is expected to revive the fastest out of all markets.
On the other hand, the CEO of Airbus, Guillaume Faury, previously said that the war in Ukraine wouldn’t affect the travelling activity of Europeans.
Most industry representatives agree, claiming that 2022 will be a big year for the industry’s recovery, which suffered millions in losses due to travel bans and other restrictions imposed by governments.