The growth in passenger traffic due to the availability of low-cost airlines has led to the growth of the aviation sector in the US. As per the estimation by the Bureau of Transportation Statistics (BTS), in 2019, the US airlines carried 925.5 million passengers, which is the highest total by comparing the records since 2003. The US estimated the total number of passengers witnessed an increase of 4.1% from 2018 and 9.0% from 2017 and 12.3% from 2016. However, the aviation industry is currently facing a considerable loss due to the ban or reduction in air travelling amid COVID-19 outbreak. Most of the global airlines’ companies may be bankrupt due to the COVID-19 crisis. However, on 25th April 2019, the US government introduced an additional fund of $9.5 billion from the Payroll Support Program to the US air carriers.
The major US carriers including Delta Air Lines Inc., American Airlines Group Inc, Southwest Airlines Co., and United Airlines Holdings Inc. are receiving $19.2 billion from the total $25 billion. These grants are provided to airlines to not cut pay or jobs by 30th September 2020. Further, the shutdown of aircraft manufacturing facilities and downfall in the sales of passenger and cargo aircraft will eventually lead to a decline in the US aviation sector. For instance, on 6th April 2020, Boeing declared to shut down the 787-plant due to the issue of South Carolina’s governor order to stay at home. The OMR report titled “Impact of COVID-19 on the US Economy” has provided the pre and post COVID-19 trends along with the analysis of industry verticals. Multiple authentic sources are used to properly estimate the effect of the outbreak on the US economy and values are derived accordingly.
The US automobile manufacturers halted production amid COVID-19 epidemic
As per the Alliance for Automotive Innovation, up to 26th March 2020, 93% of all the US automobile production were offline due to the COVID-19 outbreak. These include Fiat Chrysler Automobiles, Ford, and General Motors, along with other foreign automobile companies with operations in the US, including Volkswagen, Honda, and Toyota. Supply chain disruptions and lockdown in several US states are some major factors that resulted in temporary closure of their operations. This, in turn, would restrict the growth of the automobile sector in the US.
OMR Global Recently Published Report on: https://www.omrglobal.com/industry-reports/impact-of-covid-19-on-us-economy
The Report Covers
- Historical market growth estimation of the US economy excluding COVID-19 pandemic effect
- Deviations in the US economy growth rate due to COVID-19 pandemic
Verticals Affected Most
- Automobile
- Energy
- Food & Beverage
- Electrical and Electronics
- Aviation
- Healthcare
- Retail & E-commerce
- Travel and Tourism
- Others
Company Profiles
- Alphabet Inc.
- Amazon.com, Inc.
- Apple Inc.
- AT&T Inc.
- Comcast Corp.
- Chevron Corp.
- Ford Motor Co.
- General Electric Co.
To Learn More About this Report Request a Free Sample Copy @ https://www.omrglobal.com/request-sample/impact-of-covid-19-on-us-economy
