2020 was a dramatic year for commercial passenger aviation. At the beginning of the COVID-19 pandemic, TSA screeners processed approximately two million passengers a day. By April 2020, they processed less than 100,000 passengers per day. The fact is the COVID-19 pandemic wiped away 21 years of global passenger traffic growth in merely 12 months. Even with generous government support, many airlines were forced to cut routes, park jets, and layoff employees.
The pandemic caused an estimated $35 billion in losses in 2020. United Airlines stock plummeted by 51%. For the first time in 40 years, Southwest Airlines, long a symbol of good management and stewardship, closed its books without turning a profit. Bell weather aviation companies were going through some of the worst times in their existence.
A dismal 2020 notwithstanding, there is room for optimism, as commercial aviation improved performance in 2021 and looks to further improve in 2022. Though most airlines are predicted to lose money in 2022, some aviation experts predict the size and rate of those losses will decrease. Fortunately, most industry insiders believe the deepest point of the crisis has passed.
At Ehrenstein|Sager, we regularly work with aerospace companies and understand their business and legal issues. Contact us today at email@example.com to learn more about our work in the aerospace sector.