{"id":470908,"date":"2021-04-05T10:38:28","date_gmt":"2021-04-05T14:38:28","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=470908"},"modified":"2021-04-05T10:38:28","modified_gmt":"2021-04-05T14:38:28","slug":"us-domestic-air-travel-to-make-full-recovery-by-early-2022-according-to-oliver-wyman","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/us-domestic-air-travel-to-make-full-recovery-by-early-2022-according-to-oliver-wyman\/","title":{"rendered":"US Domestic Air Travel to Make Full Recovery by Early 2022, According to Oliver Wyman"},"content":{"rendered":"<div class=\"xn-newslines\">\n<h2 class=\"xn-hedline\">Pent-Up Demand and Access to Vaccines Creating Faster Than Expected Rebound<\/h2>\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">NEW YORK<\/span>, <span class=\"xn-chron\">April 5, 2021<\/span> \/PRNewswire\/ &#8212;<b>\u00a0<\/b>Leisure travel in America will push the US domestic airline industry to a COVID recovery by early 2022 according to a <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3118544-1&amp;h=1034966053&amp;u=https%3A%2F%2Fwww.oliverwyman.com%2Four-expertise%2Finsights%2F2021%2Fmar%2Fairline-economic-analysis-2020-2021.html&amp;a=new+report\" rel=\"nofollow noopener noreferrer\">new report<\/a> from consulting firm Oliver Wyman.<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder1\">\n<p>\n          <a href=\"https:\/\/mma.prnewswire.com\/media\/1330561\/Oliver_Wyman_Logo.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><br \/>\n            <img decoding=\"async\" src=\"https:\/\/mma.prnewswire.com\/media\/1330561\/Oliver_Wyman_Logo.jpg\" title=\"(PRNewsfoto\/Oliver Wyman)\" alt=\"(PRNewsfoto\/Oliver Wyman)\" \/><br \/>\n          <\/a>\n        <\/p>\n<\/p><\/div>\n<p>&#8220;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,&#8221;\u00a0 said <span class=\"xn-person\">Tom Stalnaker<\/span>, a partner and global aviation practice leader at Oliver Wyman. &#8220;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.&#8221;<\/p>\n<p>The rapidly increasing availability of vaccines and economic stimulus from the <span class=\"xn-money\">$1.9 trillion<\/span> 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 <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3118544-1&amp;h=1608913526&amp;u=https%3A%2F%2Fwww.oliverwyman.com%2Four-expertise%2Finsights%2F2020%2Fapr%2Fcovid-19-pandemic-navigator.html&amp;a=Oliver+Wyman%27s+Pandemic+Navigator\" rel=\"nofollow noopener noreferrer\">Oliver Wyman&#8217;s Pandemic Navigator<\/a> is now predicting that the US will reach herd immunity by mid-June to early July \u2014 three to six weeks ahead of earlier forecasts. <\/p>\n<p>\n        <b>Additional findings: <\/b>\n      <\/p>\n<ul type=\"disc\">\n<li>In mid-March, US travel demand rose to more than 50 percent of 2019 levels, which is the highest it has been on a sustained basis since the start of the pandemic.\n<\/li>\n<li>The opposite is true with corporate and international travel, which is still down more than 80 percent from 2019. These segments of the market will not recover before 2023.\n<\/li>\n<li>The loss of business travel is a real challenge for some full-service airlines, because they depend on high-yielding customers to provide more than half of their profits and a third of revenues in major economies such as the US. To compensate for the loss of business and international travelers, full-service carriers are starting to sell more services a la carte, aimed at a broader customer base with different needs and less willingness to pay.\n<\/li>\n<li>Our analysis of US Department of Transportation data reveals revenue per available seat mile (RASM) for full-service airlines fell 50 percent year-over-year in the second quarter of 2020, making it one of the darkest periods for US carriers. Meanwhile, the RASM for low-cost airlines fell 23 percent in the same three months. The third quarter of 2020 brought the performance of the two airline groups closer together, with full-service carriers declining 45 percent and low-cost carriers down 38 percent. <\/li>\n<\/ul>\n<p>&#8220;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.&#8221; Stalnaker said. &#8220;But make no mistake, the demand to travel is here and we don&#8217;t see it going away anytime soon.&#8221; <\/p>\n<p>\n        <b>About the Airline Economics Analysis <\/b>\n      <\/p>\n<p>This year&#8217;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.<\/p>\n<p>\n        <b>About Oliver Wyman<br \/><\/b>Oliver 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\u00a0[NYSE: MMC]. For more information, visit\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3118544-1&amp;h=4131906791&amp;u=http%3A%2F%2Fwww.oliverwyman.com%2F&amp;a=www.oliverwyman.com\" rel=\"nofollow noopener noreferrer\">www.oliverwyman.com<\/a>. Follow Oliver Wyman on Twitter @OliverWyman.<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder2\"><\/div>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=NY31882&amp;sd=2021-04-05\" \/> View original content to download multimedia:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/us-domestic-air-travel-to-make-full-recovery-by-early-2022-according-to-oliver-wyman-301262073.html\">http:\/\/www.prnewswire.com\/news-releases\/us-domestic-air-travel-to-make-full-recovery-by-early-2022-according-to-oliver-wyman-301262073.html<\/a><\/p>\n<p>SOURCE  Oliver Wyman<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=NY31882&amp;Transmission_Id=202104051035PR_NEWS_USPR_____NY31882&amp;DateId=20210405\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pent-Up Demand and Access to Vaccines Creating Faster Than Expected Rebound PR Newswire NEW YORK, April 5, 2021 \/PRNewswire\/ &#8212;\u00a0Leisure 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. &#8220;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,&#8221;\u00a0 said Tom Stalnaker, a partner and global aviation practice leader at Oliver Wyman. &#8220;We are still far from a full recovery for the overall industry, but we expect some of the airlines to start turning cashflow &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/us-domestic-air-travel-to-make-full-recovery-by-early-2022-according-to-oliver-wyman\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;US Domestic Air Travel to Make Full Recovery by Early 2022, According to Oliver Wyman&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-470908","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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