IATA warns that a recent rise in COVID-19 cases has already weakened bookings in the second half of June and could severely impact the expected recovery of air travel.

The number of COVID-19 cases, which is rising particularly fast in parts of the developing world and the U.S., is not the only reason for concern. While businesses expect a V-shaped recovery of the economy in general, that does not translate into an equivalent rebound of air travel demand, as it should in normal times. Corporates “are still very cautious about travel,” Brian Pearce, IATA’s chief economist observed, but there “may be some upside surprises.” In contrast with business confidence, consumer confidence is still very low and for leisure travel to pick up in a significant way, the industry needs a better sentiment.

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