Datastream
One Year In: Air Travel Plummeted During the COVID-19 Pandemic
The Briefing
- In the spring of 2020, two-thirds of the world’s passenger jets were grounded
- Lockdowns and travel restrictions have had a significant impact on commercial air travel—for 2020, the industry reported an estimated net loss of $118.5 billion
One Year In: Air Travel Plummeted during COVID-19 Pandemic
It’s no surprise that the commercial air travel industry took a hit in 2020, given the pandemic-induced travel restrictions that began early last year.
However, it’s worth noting the sheer magnitude of the situation—according to IATA, COVID-19 was the most drastic hit to the industry since World War II.
Low Air Travel, Steep Losses
To measure air traffic, IATA uses the industry-wide metric revenue passenger kilometers (RPK). RPK is calculated by taking the number of revenue-paying passengers, and multiplying that by the total distance traveled.
In 2020 as a whole, RPK dropped by 66%—the steepest yearly decline in aviation history. As a result, the global aviation industry reported an estimated net loss of $118.5 billion.
International vs. Domestic
International air travel was hit a lot harder than domestic travel—in 2020, RPK for the worldwide international market fell 75.6%. In April, when strict lockdowns limited travel the most, international RPK was down 98% year-over-year.
In contrast, domestic only dropped by 48.8% in 2020 as a whole.
In terms of regional markets, Asia Pacific saw the largest decrease in RPK, with a decrease of more than 80%.
| International Market | RPK for 2020 (% year-on-year) |
|---|---|
| Africa | -69.8% |
| Asia Pacific | -80.3% |
| Europe | -73.7% |
| Latin America | -71.8% |
| Middle East | -72.9% |
| North America | -75.4% |
On the domestic side of things, Australia saw one of the steepest drops in RPK, at 69.5%. This makes sense, given the country’s relatively strict COVID-19 restrictions and regional lockdowns.
| Domestic Market | RPK for 2020 (% year-on-year) |
|---|---|
| 🇦🇺 Australia | -69.5% |
| 🇧🇷 Brazil | -49.0% |
| 🇨🇳 China | -30.8% |
| 🇮🇳 India | -55.6% |
| 🇯🇵 Japan | -53.6% |
| 🇷🇺 Russia | -23.5% |
| 🇺🇲 U.S. | -59.6% |
Note: These domestic passenger markets accounted for 46% of global total RPKs and approximately 84% of total domestic RPKs in 2020
The Future Looks Bright
While 2020 was a tough year, the future of aviation looks promising.
For example, China’s domestic market showed a negative correlation between new COVID-cases and RPK. When cases were down, RPK increased drastically, showing that there’s pent-up demand.
So once the virus is eradicated and restrictions are lifted, IATA expects flight activity worldwide to bounce back, as they did in China.
» Want to learn more? Check out our COVID-19 information hub to help put the past year into perspective
Where does this data come from?
Source: IATA December 2020 Report
Economy
Charted: Public Trust in the Federal Reserve
Public trust in the Federal Reserve chair has hit its lowest point in 20 years. Get the details in this infographic.
The Briefing
- Gallup conducts an annual poll to gauge the U.S. public’s trust in the Federal Reserve
- After rising during the COVID-19 pandemic, public trust has fallen to a 20-year low
Charted: Public Trust in the Federal Reserve
Each year, Gallup conducts a survey of American adults on various economic topics, including the country’s central bank, the Federal Reserve.
More specifically, respondents are asked how much confidence they have in the current Fed chairman to do or recommend the right thing for the U.S. economy. We’ve visualized these results from 2001 to 2023 to see how confidence levels have changed over time.
Methodology and Results
The data used in this infographic is also listed in the table below. Percentages reflect the share of respondents that have either a “great deal” or “fair amount” of confidence.
| Year | Fed chair | % Great deal or Fair amount |
|---|---|---|
| 2023 | Jerome Powell | 36% |
| 2022 | Jerome Powell | 43% |
| 2021 | Jerome Powell | 55% |
| 2020 | Jerome Powell | 58% |
| 2019 | Jerome Powell | 50% |
| 2018 | Jerome Powell | 45% |
| 2017 | Janet Yellen | 45% |
| 2016 | Janet Yellen | 38% |
| 2015 | Janet Yellen | 42% |
| 2014 | Janet Yellen | 37% |
| 2013 | Ben Bernanke | 42% |
| 2012 | Ben Bernanke | 39% |
| 2011 | Ben Bernanke | 41% |
| 2010 | Ben Bernanke | 44% |
| 2009 | Ben Bernanke | 49% |
| 2008 | Ben Bernanke | 47% |
| 2007 | Ben Bernanke | 50% |
| 2006 | Ben Bernanke | 41% |
| 2005 | Alan Greenspan | 56% |
| 2004 | Alan Greenspan | 61% |
| 2003 | Alan Greenspan | 65% |
| 2002 | Alan Greenspan | 69% |
| 2001 | Alan Greenspan | 74% |
Data for 2023 collected April 3-25, with this statement put to respondents: “Please tell me how much confidence you have [in the Fed chair] to recommend the right thing for the economy.”
We can see that trust in the Federal Reserve has fluctuated significantly in recent years.
For example, under Alan Greenspan, trust was initially high due to the relative stability of the economy. The burst of the dotcom bubble—which some attribute to Greenspan’s easy credit policies—resulted in a sharp decline.
On the flip side, public confidence spiked during the COVID-19 pandemic. This was likely due to Jerome Powell’s decisive actions to provide support to the U.S. economy throughout the crisis.
Measures implemented by the Fed include bringing interest rates to near zero, quantitative easing (buying government bonds with newly-printed money), and emergency lending programs to businesses.
Confidence Now on the Decline
After peaking at 58%, those with a “great deal” or “fair amount” of trust in the Fed chair have tumbled to 36%, the lowest number in 20 years.
This is likely due to Powell’s hard stance on fighting post-pandemic inflation, which has involved raising interest rates at an incredible speed. While these rate hikes may be necessary, they also have many adverse effects:
- Negative impact on the stock market
- Increases the burden for those with variable-rate debts
- Makes mortgages and home buying less affordable
Higher rates have also prompted many U.S. tech companies to shrink their workforces, and have been a factor in the regional banking crisis, including the collapse of Silicon Valley Bank.
Where does this data come from?
Source: Gallup (2023)
Data Notes: Results are based on telephone interviews conducted April 3-25, 2023, with a random sample of –1,013—adults, ages 18+, living in all 50 U.S. states and the District of Columbia. For results based on this sample of national adults, the margin of sampling error is ±4 percentage points at the 95% confidence level. See source for details.
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