Long-Haul Air Travel Not Expected to Rebound Before 2023

RIO DE JANEIRO, BRAZIL – As coronavirus vaccines started rolling out late last year, there was a palpable sense of excitement. People began browsing travel websites and airlines grew optimistic about flying again. Ryanair Holdings Plc even launched a “Jab & Go” campaign alongside images of 20-somethings on holiday, drinks in hand

It’s not working out that way.

For a start, it isn’t clear that the vaccines actually stop travelers spreading the disease, even if they’re less likely to catch it themselves. Neither are the shots proven effective against the more-infectious mutant strains that have startled governments from Australia to the U.K. into closing, rather than opening, borders. An ambitious push by carriers for digital health passports to replace the mandatory quarantines killing travel demand is also fraught with challenges and has yet to win over the World Health Organization (WHO).

This bleak reality has pushed back expectations of any meaningful recovery in global travel to 2022. That may be too late to save the many airlines with only a few months of cash reserves on hand. And the delay threatens to kill the careers of hundreds of thousands of pilots, flight crew and airport workers who’ve already been out of work for close to a year. Rather than a return to worldwide connectivity – one of the economic miracles of the jet era – prolonged international isolation appears unavoidable.

“It’s very important for people to understand that at the moment, all we know about the vaccines is that they will very effectively reduce your risk of severe disease,” said Margaret Harris, a WHO spokesperson in Geneva. “We haven’t seen any evidence yet indicating whether or not they stop transmission.”

To be sure, it’s possible a travel rebound will happen on its own – without the need for vaccine passports. Should vaccines start to drive down infection and death rates, governments might gain enough confidence to roll back quarantines and other border curbs, and rely more on passengers’ pre-flight Covid-19 tests.

The United Arab Emirates, for example, has largely done away with entry restrictions, other than the need for a negative test. While U.K. regulators banned Ryanair’s “Jab & Go” ad as misleading, the discount airline’s chief Michael O’Leary still expects almost the entire population of Europe to be inoculated by the end of September. “That’s the point where we are released from these restrictions,” he said. “Short-haul travel will recover strongly and quickly.”

For now though, governments broadly remain skittish about welcoming international visitors and rules change at the slightest hint of trouble. Witness Australia, which slammed shut its borders with New Zealand last month after New Zealand reported one Covid-19 case in the community.

“Air traffic and aviation is really way down the priority list for governments,” said Phil Seymour, president and head of advisory at U.K-based aviation services firm IBA Group Ltd. “It’s going to be a long haul out of this.”

It all means a rebound in passenger air traffic “is probably a 2022 thing,” according to Joshua Ng, Singapore-based director at Alton Aviation Consultancy. Long-haul travel may not properly resume until 2023 or 2024, he predicts.

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