Air transport will fall 62% in 2021 compared to 2019, the International Air Transport Association (IATA) projected.
As a preamble, according to Cirium, by the end of 2020, about a third of the global fleet was in storage.
IATA predicts that, by the end of 2021, there will be a decrease of around 62% in commercial air traffic (measured by revenue per passenger-kilometers) compared to 2019 levels and of 38% compared to levels of 2020.
As an example and a result of the developments related to the Covid-19 pandemic, the Embraer company is in ongoing discussions and negotiations with its clients.
Some of them have rescheduled aircraft deliveries for 2021 and beyond, which has affected Embraer’s deliveries in 2020 and projected deliveries for 2021.
But to date, Embraer has not registered cancellations of any aircraft orders.
Additionally, the downsizing of the workforce, as a result of the Covid-19 pandemic, Embraer has slowed down the pace of certification activities for the E175-E2 aircraft.
Economic uncertainty, primarily related to the Covid-19 outbreak, will continue to play a role in the investment attitude and philosophy of the public and private sectors.
Potential commercial aircraft buyers around the world are reviewing their cash flows and capital expenditures to preserve capital, which is affecting the market’s fundamentals and growth prospects.
As a result of the Covid-19 outbreak, Embraer expects the global economy to remain in an uncertain scenario that will affect the decision-making process of company boards and investors, and their willingness to allocate resources to executive air transport alternatives. , mainly when deciding on acquisitions of discretionary assets, such as the purchase of a new commercial aircraft.
The pace of recovery is difficult to predict as this outbreak is unprecedented in history.
Based on the most recent market outlook, Embraer expects domestic demand to return to 2019 levels by 2023.