You're Grounded: The COVID-19 Effect on Flight Capacity
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You’re Grounded: The COVID-19 Effect on Global Flight Capacity

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Global Flight Capacity 6 Apr Update

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You’re Grounded: The COVID-19 Effect on Flight Capacity

It’s not an exaggeration to say that the COVID-19 pandemic has thrown the world into a tailspin.

As the number of new cases continues to surge in parts of the world, numbers are beginning to decline in others as public health officials and governments tirelessly work to slow the contagion and reach of the virus.

The potent combination of trip cancellations and country-specific restrictions on international flights has had a staggering impact on the $880 billion global airline industry. Today’s visualization highlights data from the OAG Aviation Worldwide, which tracks how global flight capacity differs from last year’s numbers.

Note: this post has been updated on April 7, 2020 to reflect the latest data.

Asia Faced the First Hard Landing

Nearly all countries have some type of travel advisory in place, with many encouraging people to avoid non-essential travel even before COVID-19 was officially considered a pandemic by the World Health Organization (WHO).

The earliest impacts of these were felt in February, as flight capacity in and out of China dropped sharply around Lunar New Year. Also, the country’s sharpest year-over-year drop was recorded on February 17, 2020, with a 71% drop in flights compared to the same date in 2019. However, there’s some good news: life in China is slowly returning back to normal, as Wuhan eases its lockdown after almost two and a half months.

Flight capacity for Hong Kong, which was already seeing its traveler numbers declining due to months-long protests, continues its slump. As of April 6, 2020, scheduled flights were down by an immense 92.3% compared to 2019—the most of any Asian jurisdiction represented in the data.

India showed one of the most drastic declines, from 1.8% down to -68% on March 30, 2020. This resulted from a 21-day lockdown order on March 24, 2020—with only four hours of notice for its 1.3 billion citizens.

Monitoring the Situation Elsewhere

Meanwhile in Europe, Italy saw a 22% drop in flights coinciding with the announcement of a national lockdown March 9, 2020. Now that the situation has intensified, flights to and from Italy have plummeted 89% from their normal rates.

Germany and Spain are seeing the highest declines in scheduled flights worldwide, with approximately 92.6% less capacity as of April 6, 2020. Flight capacity in the region has plummeted thanks to widespread restrictions.

On March 11, 2020, the U.S. enforced a 30-day ban on travelers from the Schengen Area, a free-travel zone consisting of 26 countries in Europe, and has since extended to include the UK and Ireland. As a result, U.S. flight capacity is beginning its descent, dropping 45.2% by April 6, 2020 as the ban may be extended, and to even more countries.

Meanwhile, as of March 17, the U.S.-Canada border is closed for all non-essential travel. This follows a previous announcement from the Canadian government that it would be curbing entry to only Canadian citizens, family members, permanent residents, diplomats, and Americans.

Broadly speaking, countries around the world are taking similar actions to limit the spread of the virus and “flatten the curve”:

Measure TakenExample Countries*
Suspending flights from specific countries🇺🇸United States, 🇹🇷Turkey
Returning citizens must enter through specific airports🇨🇦Canada, 🇺🇸United States
Mandatory screening🇮🇹Italy, 🇧🇴Bolivia
14 day self-quarantine 🇮🇱Israel, 🇬🇷Greece
Complete closure of borders🇬🇹Guatemala, 🇵🇪Peru

*As of March 17, 2020

More Turbulent Times Ahead?

As both COVID-19 and the global response to it continues to evolve, here are the largest flight capacity reductions across different regions in the past few weeks, compared to a baseline from Jan 20, 2020:

Region20 Jan 2020 Flights23 Mar 2020 Flights30 Mar 2020 Flights06 Apr 2020 Flights% Change (6 Apr vs 30 Mar)
Western Europe18,606,4247,595,2643,840,5362,476,034-35.5%
North America22,644,12122,236,62517,221,75111,658,243-32.3%
Eastern/Central Europe3,701,2411,176,1391,930,5461,393,600-27.8%
Central America2,444,3832,040,6771,548,4581,135,163-26.7%
Upper South America1,737,7131,011,930673,016513,056-23.8%
Southeast Asia10,866,6236,177,0934,810,9453,856,977-19.8%
South Asia5,160,9584,245,6351,538,9181,371,156-10.9%
Middle East4,930,0302,580,4661,760,8091,619,546-8.0%
Northeast Asia25,278,59413,782,87912,465,26711,730,667-5.9%

Source: OAG

Naturally, the economic impact on airlines has been immense. Many airlines worldwide face the threat of bankruptcy in coming months, if these declining trends continue. To hedge against these domino effects of the outbreak, U.S. airlines are requesting upwards of $60 billion in bailouts and direct assistance from the government.

COVID-19 is throwing everything up in the air—including the fate of airline companies. It’s not yet clear when these stringent travel restrictions may be lifted, but one can only hope that these airlines do not have to continue to weather the storm much longer.

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Markets

This Simple Chart Reveals the Distribution Of Global Wealth

Global wealth at the end of 2020 was about $418 trillion. Here’s a breakdown of the global wealth distribution among the adult population.

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The Global Wealth Distribution in One Chart

The pandemic resulted in global wealth taking a significant dip in the first part of 2020. By the end of March, global household wealth had already declined by around 4.4%.

Interestingly, after much monetary and fiscal stimulus from governments around the world, global household wealth was more than able to recover, finishing up the year at $418.3 trillion, a 7.4% gain from the previous year.

Using data from Credit Suisse, this graphic looks at how global wealth is distributed among the adult population.

How is Global Wealth Distributed?

While individuals worth more than $1 million constitute just 1.1% of the world’s population, they hold 45.8% of global wealth.

Wealth RangeWealthGlobal Share (%)Adult Population
Over $1M$191.6 trillion45.8%Held by 1.1%
$100k-$1M$163.9 trillion39.1%Held by 11.1%
$10k-$100k$57.3 trillion13.7%Held by 32.8%
Less than $10k$5.5 trillion1.3%Held by 55.0%
Total$418.3 trillion100.0%Held by 100.0%

On the other end of the spectrum, 55% of the population owns only 1.3% of global wealth.

And between these two extreme wealth distribution cases, the rest of the world’s population has a combined 52.8% of the wealth.

Global Wealth Distribution by Region

While wealth inequality is especially evident within the wealth ranges mentioned above, these differences can also be seen on a more regional basis between countries.

In 2020, total wealth rose by $12.4 trillion in North America and $9.2 trillion in Europe. These two regions accounted for the bulk of the wealth gains, with China adding another $4.2 trillion and the Asia-Pacific region (excluding China and India) another $4.7 trillion.

Here is a breakdown of global wealth distribution by region:

RegionTotal Wealth
(US$B)
Change in Total Wealth
(US$B)
Change %Wealth Per Adult
(US$B)
Change %
North America136,31612,37010.0486,9309.1
Europe103,2139,1799.8174,8369.8
Asia-Pacific75,2774,6946.760,7905.0
China74,8844,2466.067,7715.4
India12,833-594-4.414,252-6.1
Latin America10,872-1,215-10.124,301-11.4
Africa4,946360.77,371-2.1
World418,34228,7167.479,9526.0

India and Latin America both recorded losses in 2020.

Total wealth fell in India by $594 billion, or 4.4%. Meanwhile, Latin America appears to have been the worst-performing region, with total wealth dropping by 11.4% or $1.2 trillion.

Post-COVID Global Outlook 2020-2025

Despite the burden of COVID-19 on the global economy, the world can expect robust GDP growth in the coming years, especially in 2021. The latest estimates by the International Monetary Fund in April 2021 suggest that global GDP in 2021 will total $100.1 trillion in nominal terms, up by 4.1% compared to last year.

The link in normal times between GDP growth and household wealth growth, combined with the expected rapid return of economic activity to its pre-pandemic levels, suggests that global wealth could grow again at a fast pace. According to Credit Suisse estimates, global wealth may rise by 39% over the next five years.

Low and middle-income countries will also play an essential role in the coming year. They are responsible for 42% of the growth, even though they account for just 33% of current wealth.

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Markets

Mapping The Biggest Companies By Market Cap in 60 Countries

Tech, finance or energy giant? We mapped the biggest companies by market cap and industry.

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Mapping The Biggest Companies By Market Cap in 60 Countries Share

The Biggest Companies By Market Cap in 60 Countries

Tech giants are increasingly making up more of the Fortune 500, but the world’s biggest companies by market cap aren’t so cut and dry.

Despite accounting for the largest market caps worldwide—with trillion-dollar companies like Apple and contenders including Tencent and Samsung—tech wealth is largely concentrated in just a handful of countries.

So what are the biggest companies in each country? We mapped the largest company by market cap across 60 countries in August 2021 using market data from CompaniesMarketCap, TradingView, and MarketScreener.

What are the Largest Companies in the World?

The world has 60+ stock exchanges, and each one has a top company. We looked at the largest local company, since many of the world’s largest firms trade on multiple exchanges, and converted market cap to USD.

CountryCompanyIndustryMarket Cap (August 2021)
USAAppleTechnology$2.5T
Saudi ArabiaSaudi AramcoEnergy$1.9T
TaiwanTSMCTechnology$594.5B
ChinaTencentTechnology$554.0B
South KoreaSamsungTechnology$429.7B
FranceLVMHConsumer Cyclical$414.3B
SwitzerlandRocheHealthcare$350.0B
NetherlandsASMLTechnology$322.6B
JapanToyotaConsumer Cyclical$251.6B
DenmarkNovo NordiskHealthcare$236.7B
IrelandAccentureTechnology$208.2B
IndiaReliance IndustriesEnergy$198.1B
AustraliaBHP GroupMaterials$191.7B
CanadaShopifyTechnology$185.7B
UKAstrazenecaHealthcare$182.0B
GermanySAPTechnology$174.6B
SingaporeSEATechnology$152.3B
Hong KongAIAFinancials$146.4B
BelgiumAnheuser-Busch InbevConsumer Staples$122.7B
SpainInditexConsumer Cyclical$108.3B
BrazilVALEMaterials$103.9B
RussiaSberbankFinancials$96.7B
ItalyEnelUtilities$93.7B
ArgentinaMercadoLibreConsumer Cyclical$89.5B
SwedenAtlas CopcoIndustrials$84.1B
South AfricaNaspersTechnology$74.1B
NorwayEquinorEnergy$67.9B
UAEEtisalatCommunication$58.7B
MexicoWalmexConsumer Staples$58.1B
IndonesiaBank Cental AsiaFinancials$54.8B
KazakhstanKaspi.kzFinancials$49.8B
QatarQNBFinancials$48.2B
FinlandNordea BankFinancials$48.0B
LuxembourgArcelorMittalMaterials$36.3B
AustriaVerbundUtilities$33.7B
ThailandPTT PCLEnergy$30.1B
ColombiaEcopetrolEnergy$26.7B
MalaysiaMaybankFinancials$23.7B
PhilippinesSM InvestmentsConsumer Cyclical$22.9B
KuwaitKuwait Finance HouseFinancials$21.9B
PortugalEDP GroupUtilities$21.0B
VietnamVinhomesReal Estate$17.1B
IsraelNICETechnology$16.9B
KenyaSafaricomCommunication$16.0B
Czech RepublicÄŒEZ GroupEnergy$15.8B
New ZealandXeroTechnology$15.8B
TurkeyQNB FinansbankFinancials$15.8B
HungaryOTP BankFinancials$15.6B
ChileEnel AmericasUtilities$14.3B
MoroccoMaroc TelecomCommunication$13.6B
PolandPKO Bank PolskiFinancials$12.6B
CyprusPolymetalMaterials$10.0B
NigeriaDangote GroupMaterials$10.0B
BahrainAhli United BankFinancials$8.6B
GreeceOTE GroupCommunication$8.4B
PeruCredicorpFinancials$8.0B
EgyptCommercial International BankFinancials$5.9B
IcelandMarelIndustrials$5.8B
OmanBank MuscatFinancials$4.2B
PanamaCopa HoldingsIndustrials$3.1B

Many are former monopolies or massive conglomerates that have grown in the public space, such as South Africa’s Naspers and India’s Reliance Industries.

Others are local subsidiaries of foreign corporations, including Mexico’s Walmex, Chile’s Enel and Turkey’s QNB Finansbank.

But even more noticeable is the economic discrepancy. Apple and Saudi Aramco are worth trillions of dollars, while the smallest companies we tracked—including Panama’s Copa Group and Oman’s Bank Muscat—are worth less than $5 billion.

Finance and Tech Dominate The Biggest Companies By Market Cap

Across the board, the largest companies were able to accumulate wealth and value.

Some are newer to the top thanks to recent success. Canada’s Shopify has become one of the world’s largest e-commerce providers, and the UK’s AstraZeneca developed one of the world’s COVID-19 vaccines.

But the reality is most companies here are old guards that grew on existing resources, or in the case of banks, accumulated wealth.

IndustryBiggest Companies by Country
Financials16
Technology12
Energy6
Materials5
Communication4
Consumer Cyclical4
Utilities4
Healthcare3
Industrials3
Consumer Staples2
Real Estate1

Banks were the most commonly found at the top of each country’s stock market. Closely behind were oil and gas giants, mining companies, and former state-owned corporations that drove most of a country’s wealth generation.

But as more economies develop and catch up to Western economies (where tech is dominant), newer innovative companies will likely put up a fight for each country’s top company crown.

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