Airline industry counting losses amid coronavirus pandemic

Airline industry counting losses amid coronavirus pandemic
Global aviation is experiencing the worst crisis in its history. The negative consequences of the COVID-19 pandemic affected the Kazakh civil aviation sector as well.
In March and April, the number of passengers of the domestic airline companies decreased by 70 percent, reported the Kazakh Ministry of Industry and Infrastructure Development. Due to the reduction and restriction of flights, the Kazakh airlines lost 235 billion Tenge (US$551 million), airports lost 24.5 billion Tenge (US$57.5 million) and Kazaeronavigatsia RSE, the air traffic management company, lost 28 billion Tenge (US$65.7 million). Kazakh airline companies suffer not only from the closure of airports, but also from the devaluation of the national currency.
In order to prevent the spread of coronavirus in Kazakhstan, the State Commission temporarily suspended 438 flights per week on 97 international routes, which make 99 percent of all overseas flights. All regular domestic flights were suspended as well. Experts say that this is an unprecedented occurrence in the aviation history.
According to the International Civil Aviation Organization (ICAO), it is estimated that the global air transport industry will record a 51 percent drop of seats offered by airlines during the first half of 2020. ICAO estimates a 500 million passenger reduction. Operating revenue losses of airlines are estimated at US$124 billion. Industry passenger revenues could plummet to US$252 billion.