Coronavirus (Covid-19) Executive Briefing
Understanding the economic impact of the Covid-19 pandemic and the implications for the travel and tourism sector
- ECONOMIC IMPACT -
After weeks of gradual decline, GDP estimates for many countries have levelled off. Consensus forecast for world GDP growth in 2020 is -3.9%.
The Eurozone reported record price deflation for the first time since 2016 (1 September). Dun & Bradstreet believes the global economy is unlikely to reach pre-pandemic level output before 2022 (7 September).
-4.4%
Fitch Ratings revised its 2020 forecast for global economic growth to -4.4% from the earlier estimated -4.6% (7 September).
9.7%
The German economy contracted by a record 9.7% in the second quarter, according to the German statistics office (25 August).
Covid-19: Employment Outlook
- SECTOR IMPACT: TRAVEL & TOURISM -
As of 26 August 2020
decrease in airline revenues
$11bn
Airlines continue to struggle. Delta registered a $3.9bn adjusted pre-tax loss for the June quarter as revenues fell by more than $11bn compared to last year.
Further Job Losses
900/500
Job losses are announced with increasing regularity. Hays Travel has put 900 jobs at risk, while STA's demise is expected to cost 500 jobs in the UK.
Changes to CARES ACT funding
1 October
Swissport, Menzies Aviation, WFS and dnata have all warned of potential job cuts as airports continue to see reduced traffic and the airline industry awaits 1 October with bated breath as terms forbidding job cuts attached to CARES Act funding expire.
Key travel market developments
