Airfares to rise 54% load factor to fall to 62%

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AVERAGE airfare in Asia-Pacific including the Philippines is expected to increase by 54 percent as compared to last year if social distancing measures on the aircraft are implemented.

The findings for the region of International Air Transport Association (IATA) mirrors its global outlook on average fares once the the middle seat in an aircraft is eliminated.

IATA said the calls for social distancing measures on the aircraft would fundamentally shift the economics of aviation by slashing the maximum load factor to 62 percent. That is well below the average industry breakeven load factor of 77 percent.

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With fewer seats to sell, unit costs would rise sharply. Compared to 2019, airfares would need to go up dramatically — between 43 percent and 54 percent depending on the region — just to cover costs, IATA said.

In Asia Pacific, the average fare with social distancing stood at $217, higher by 54 percent as compared with the $141 average fare last year.

“Airlines are fighting for their survival. Eliminating the middle seat will raise costs. If that can be offset with higher fares, the era of affordable travel will come to an end. On the other hand, if airlines can’t recoup the costs in higher fares, airlines will go bust. Neither is a good option when the world will need strong connectivity to help kick-start the recovery from COVID-19’s economic devastation,” said Alexandre de Juniac, IATA director general and chief executive officer.

IATA said evidence suggests that the risk of transmission on board an aircraft is low. Mask-wearing by passengers and crew will reduce the already low risk, while avoiding the dramatic cost increases to air travel that onboard social distancing measures would bring.

“ We must arrive at a solution that gives passengers the confidence to fly and keeps the cost of flying affordable. One without the other will have no lasting benefit,” De Juniac said.
IATA recommended mandatory face-coverings for passengers and masks for crew as one of several actions to reduce the already low risk of contracting COVID-19 on board the aircraft.

In addition, layers of temporary biosecurity measures are being proposed: temperature screening of passengers, airport workers and travellers, boarding and deplaning processes that reduce contact with other passengers or crew, limiting movement within the cabin during flight, more frequent and deeper cabin cleaning; and simplified catering procedures that lower crew movement and interaction with passengers.

When proven and available at scale, testing for COVID-19 or immunity passports could also be included as temporary biosecurity measures, IATA said.

IATA does not recommend restricting the use of the middle seat to create social distancing while onboard the aircraft.

Even if mandated, keeping the middle seat open will not achieve the recommended separation for social distancing to be effective, IATA noted. Most authorities recommend one to two meters while the average seat width is less than 50 centimeters.

.“In the immediate term, our aim is to make the cabin environment even safer with effective measures so that passengers and crew can return to travel with confidence.

Screening, face coverings and masks are among the many layers of measures that we are recommending. Leaving the middle seat empty, however, is not,” he added.

Carmelo Arcilla, Civil Aeronautics Board executive director, said the government is finalizing the guidelines on how social distancing measures will be implemented inside the aircraft.

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