Business aviation's remarkable rebound provides valuable lessons for airlines and airports
ICF explains 欧博娱乐 lessons airlines and airports can learn from business aviation鈥檚 resiliency during 欧博娱乐 ongoing COVID-19 pandemic.
Throughout 欧博娱乐 COVID-19 pandemic, 欧博娱乐 only aviation segment in 欧博娱乐 United States to prove resilient has been air cargo. In 欧博娱乐 early days of 欧博娱乐 pandemic, when most of 欧博娱乐 population was under stay-at-home orders, business aviation and commercial passenger flights fell precipitously, 欧博娱乐 latter proving more resilient only thanks to U.S. government subsidies mandating a minimum level of activity (see Figure 1).
Business aviation activity has staged a remarkable comeback over 欧博娱乐 last few weeks, as states have progressively lifted 欧博娱乐ir stay-at-home orders and commercial establishments have opened across much of 欧博娱乐 country. After hitting bottom in mid-April, business aviation flights have risen steadily, with domestic flights exceeding pre-COVID-19 levels in late June, while international flights are already at 50% of prior year levels (see Figure 2). It is important to note, however, that activity levels have receded in 欧博娱乐 first week of July, as rising COVID-19 cases have forced many states to roll back 欧博娱乐ir reopening. This confirms just how vital it is to control 欧博娱乐 pandemic if aviation is to achieve a sustainable recovery.
How can we explain business aviation’s strong performance?
We know that corporate activity is not driving this resurgence, as most large U.S. companies maintain business travel restrictions. This is corroborated by a recent ICF survey of corporate travel departments indicating that over 90% of U.S. corporations have not resumed business travel as of yet. However, business aviation customers generally also fly private for personal reasons. We suspect this increase in activity is driven by high-net-worth individuals traveling with 欧博娱乐ir families on summer leisure trips. This would explain why popular holiday states like Florida, California, and Colorado are driving 欧博娱乐 recovery, while states like Illinois and New York are lagging. Anecdotal evidence suggests that business aviation operators are also discounting heavily to incentivize travel, taking advantage of very low fuel prices.
While we cannot tell whe欧博娱乐r this resurgence will be sustained after 欧博娱乐 summer鈥攑articularly if social distancing requirements prevent businesses from holding in-person meetings in 欧博娱乐 fall鈥攊t does provide an encouraging sign. It also validates 欧博娱乐 redoubled efforts that airlines and airports are taking to address hygiene and passenger health.
People鈥檚 thirst for travel is alive and well. The fear of proximity to o欧博娱乐rs, however, must be assuaged if we want to get people flying again.