5. Staggering Debt Levels Will Lead to Rising Increases And a Larger Role For The Government
Many airlines have had to borrow heavily to stay afloat. This is an aviation change due to COVID-19. Accessing state aid, credit facilities, and bond issuances, the industry amassed a total debt of over $180 billion in 2020. This figure is more than half the total yearly revenues. repaying these loans is made harder by worsening credit ratings.
These costs will have to be recouped most likely with increased ticket prices. Also when demand for air travel returns, it will likely exceed supply which will lead to a glut of people wanting to travel. It will take some time for air carriers to restore capacity and return the industry to its former glory. This has arisen from aviation changes due to COVID-19.
