Examing the Far-Reaching Effects of Covid-19 on the Airline Industry in the United Kingdom

Abstract or Introduction

In late 2019, a novel coronavirus outbreak emerged in Wuhan, China, which rapidly spread across the globe, resulting in a pandemic of unprecedented proportions. The highly infectious virus, known as Covid-19, caused a significant loss of life in a short period, prompting governments worldwide to implement stringent measures to curb its spread. In the UK, the travel and tourism industries contributed a substantial 6.7 percent of the overall gross value added in 2018. However, the pandemic hit these sectors hard in at its peak for over two years, with governments imposing restrictions in the UK and worldwide leading to extended periods of reduced tourism activity. On 16 March 2021, unwarranted travel was not encouraged in the UK, followed by a nationwide lockdown announcement. Although some easing of restrictions occurred in June and July, regional variations resulted in a mixed impact on the travel and tourism industry. The airline sector suffered the most from the pandemic's spread, leading to unprecedented challenges for many UK airlines. As countries worldwide implemented travel restrictions and lockdowns, demand for air travel plummeted, leading to substantial revenue losses for several UK air travel agencies. The second and third lockdowns towards the end of 2020 further impacted travel, leading to the suspension of travel corridors on 18 January 2021.

The COVID-19 pandemic dealt a heavy blow to the airline industry in the UK, resulting in significant financial losses for many carriers. To keep their businesses afloat, airlines had to cancel flights and reduce their workforce. Despite some financial support provided by the UK government, the assistance fell short of covering the industry's losses. In response to the pandemic, people's travel patterns have shifted, with many choosing domestic travel or staying closer to home. This change has had a profound effect on carriers such as British Airways and Easyjet, which relied heavily on international travel. Like other countries, the UK implemented measures to mitigate the spread of the disease, including vaccination. Three years after the pandemic, this study tries to examine the impact of corona Virus pandemic on the UK airline industry.