After the “black swan” event of 2020, the global aerospace and defense (A&D) industry revenue is expected to begin a recovery in 2021. But this recovery is likely to be uneven across the two key sectors: commercial aerospace and defense. The commercial aerospace sector has been significantly affected by the COVID-19 pandemic, which has led to a massive reduction in passenger traffic, in turn affecting aircraft demand. As the travel demand is not likely to return to pre-pandemic levels soon, the sector is expected to recover slowly. On the contrary, the defense sector was comparatively stable throughout 2020, as most countries have not significantly reduced defense budgets and remain committed to sustaining their military capabilities.
“Flight Hours vs Passenger Numbers” in Commercial Sector
Most are happy to see an end to 2020, and began their 2021 with an optimistic outlook. With the advent of COVID, there has been a certain behavioral change among passengers, due to which the commercial market took a massive downturn. Based on analyst reports, flight hours are recovering strongly in all regions over recent months, but passenger numbers have not yet increased at the same rate. Clearly, this is all dependent upon continued lockdowns, especially in Europe. The aerospace business is global, and virtual engagement works in the near term, but it is important to meet and engage face-to-face with employees and customers over the long term.