NEW YORK, April 5, 2021 /PRNewswire/ -- Leisure travel in America will push the US domestic airline industry to a COVID recovery by early 2022 according to a new report from consulting firm Oliver Wyman.
"A year ago, we would have thought that a full domestic recovery in this timeframe for the US was almost impossible, but the combination of pent-up demand, economic stimulus, and access to vaccines is making a difference," said Tom Stalnaker, a partner and global aviation practice leader at Oliver Wyman. "We are still far from a full recovery for the overall industry, but we expect some of the airlines to start turning cashflow positive in a matter of months, particularly in the US."
The rapidly increasing availability of vaccines and economic stimulus from the $1.9 trillion American Rescue Plan Act are two reasons for the increase in domestic leisure travel in the US. Both factors also happened to coincide with the timing of spring break across many states, which caused a spike in demand. Consumers are also looking forward to summer travel, and Oliver Wyman's Pandemic Navigator is now predicting that the US will reach herd immunity by mid-June to early July — three to six weeks ahead of earlier forecasts.
Additional findings:
"The overall comeback of travel will depend on how fast nations get their populations vaccinated and standardize their health passport travel protocols and testing regulations." Stalnaker said. "But make no mistake, the demand to travel is here and we don't see it going away anytime soon."
About the Airline Economics Analysis
This year's in-depth report covers a range of aviation industry-specific economic and performance data as well as global capacity during the pandemic. For our 2020-2021 edition, we expanded our report to be more global in nature, reflecting the worldwide impact of COVID-19. This edition includes forward looking commentary about the industry recovery. The analysis outlines the varied pace at which different regions were affected by the virus and will ultimately recover from it.
About Oliver WymanOliver Wyman is a global leader in management consulting. With offices in 60 cities across 29 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 5,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a business of Marsh McLennan [NYSE: MMC]. For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.
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SOURCE Oliver Wyman