June Air Travel Study Shows Signs of Life for Airline, IFC Markets

Orlando Sanford International Airport. Photo: Daniel Piraino (Flickr)

There may be a sliver of good news for satellite In-Flight Connectivity (IFC) providers looking to rebound from the COVID-19 shutdown, according to new air travel industry data released by the Airlines Reporting Corp. (ARC) earlier this week.

In a study that examined net sales from ARC-accredited travel agencies, ARC found that airline travel sales increased 337% in June 2020 compared to May 2020, representing the highest monthly sales growth since the start of the COVID-19 pandemic. During that same period of time, ARC noted a 56% increase in the number of passenger trips, with U.S. domestic flights up 57% and international trips up 53%.

Airlines and in-flight service providers have been hit especially hard in 2020 as COVID-19 preventative measures and travel restrictions have made it difficult for vacationers to travel. ARC’s study highlighted the overall impact of the pandemic. Despite the sharp uptick in June, year-over-year net airline sales are still down 94%, with the consolidated dollar value of tickets transacted by agencies last month totaling $469 million, compared to $7.9 billion in June 2019.

The number of U.S. domestic trips in 2020 is down 72% for the year compared to 4.3 million in 2019, with international trips down 84%.