A PESTEL Analysis of The Impacts of COVID-19 Crisis on Air Transportation Sector's Future

Abstract

In this study, the Covid-19 pandemic, which has significantly impacted the aviation industry, is examined from six external factors including political, economic, sociological, technological, environmental, and legal using a PESTEL analysis. Initially, flight restrictions were implemented due to the Covid-19 pandemic, and airline companies were also affected by government-imposed social distancing measures. Economically, the Covid-19 pandemic has been particularly damaging to passenger transportation, with some countries experiencing a recovery but others facing employment issues in the industry. Sociologically, there has been an increase in reluctance to fly and changes in consumer behavior and habits, with a decrease in demand for unnecessary products. This process has also led to a number of positive developments from a technological standpoint, such as the rapid development and deployment of new vaccines and health monitoring technologies, as well as a decrease in emissions from the industry. This study is original in its examination of the Covid-19 pandemic impacts on the aviation industry using a PESTEL analysis. Based on the study's findings, strategies should focus on restructuring the aviation industry for Covid-19 pandemic readiness and recovery, including promoting restructured travel packages, low-cost flights, and popular routes. Emphasis on energy efficiency and environmental sustainability is crucial.