COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá

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COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
COVID-19
Press Conference
The Americas
June 11, 2020

Peter Cerdá
Regional Vice President, The Americas
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
Today’s Agenda

 Latest
Financial              Country                            Q&A
Forecast               Updates

                                           Air Quality,
                                          Quarantine &
            Industry                       COVID-19
             Restart                        Testing

                           11 June 2020
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
International shutdown in April seen in all regions
Mostly repatriation passenger flights only
                                            International RPKs flown by region of airline registration, billion
                                   190
                                                                    April 2019       April 2020
                                   170

                                   150
         RPKs per month, billion

                                   130

                                   110

                                    90

                                    70

                                    50

                                    30

                                    10       -99%           -98%            -99%            -98%           -97%        -98%
                                   -10   Africa      Asia Pacific      Europe         L America &      M East     N America
                                                                                      Caribbean

Source: IATA Economics using data from IATA Statistics
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
Increase in flights suggests April was the low point
Flights rose 30% in May from April low, though still 73% down on 1 Jan
                                                                                                                 Daily flights, indexed 1st January = 100
                                                        120
        Number of flights, index to equal 100 1st Jan

                                                        100

                                                         80                                                                                                               Worldwide flights

                                                         60

                                                         40

                                                         20                                                                                                                                                                                                   +30%
                                                                                                                                                                                          Low point (21 April)
                                                          0

                                                                                                                                                                                                         22-Apr

                                                                                                                                                                                                                  29-Apr
                                                                                                                                                                                                15-Apr
                                                                              15-Jan

                                                                                       22-Jan

                                                                                                29-Jan

                                                                                                                  12-Feb

                                                                                                                           19-Feb

                                                                                                                                    26-Feb

                                                                                                                                                                                1-Apr

                                                                                                                                                                                        8-Apr
                                                                                                                                                     11-Mar

                                                                                                                                                              18-Mar

                                                                                                                                                                       25-Mar

                                                                                                                                                                                                                                   13-May

                                                                                                                                                                                                                                            20-May

                                                                                                                                                                                                                                                     27-May
                                                              1-Jan

                                                                      8-Jan

                                                                                                         5-Feb

                                                                                                                                             4-Mar

                                                                                                                                                                                                                           6-May
Source: IATA Economics analysis based on data provided under license by FlightRadar 24. All rights reserved.
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
Unprecedented 2020 loss narrowed but not eliminated
After $84bn net loss this year we forecast further loss of $15bn in 2021
                     60                  Airline industry net profits and EBIT margin                 15

                                                    Net profit     EBIT margin
                     40                                                                               10

                     20                                                                               5

                      0                                                                               0

                                                                                                            % of revenue
      US$ billion

                     -20                                                                              -5

                     -40                                                                              -10

                     -60                                                                              -15

                     -80                                                                              -20

                    -100                                                                              -25
                           2007   2009     2011        2013         2015         2017   2019   2021
Source: IATA Economics Economic Performance of the Airline Industry, Mid-Year 2020
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
Country Developments

Argentina                                           Ecuador
• Deferment of payment for overflight and           • Country has re-opened Quito Airport for
  terminal navigation fees.                           international arrivals.
• Close dialogue with Government on restart         • But COVID-19 testing and quarantine
  dates for domestic & international operations.      measures will significantly impact demand.

Mexico
• Discounts granted for airport services at MEX,    Antigua
  such as landing and parking fees.
                                                    • First island in the Caribbean to
• Decision to cancel the construction of              reopen for international arrivals.
  Terminal 3 at Mexico City International Airport
  (AICM) due to the effects of COVID-19.
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
Some Governments still have not acted
Colombia                                        Chile
• Government backed loans needed.               • Waiting for Government’s financial support
                                                  to airlines.
• Urgent need for coordinated decision on
  restart of domestic operations.

                                                Peru
Panama
                                                • Government agreed to analyze
• Government has not taken any firm steps         development of a financial support plan.
  to provide tangible relief to the industry.
                                                • For domestic flights to resume on 1 July,
• Risk of falling behind other regional hubs
                                                  airlines need to know health protocols.
  whose governments support granted.
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
Update on Industry
 Restart Activities
11 June 2020
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
The importance of a harmonized restart process by
implementing ICAO’s CART Guidelines
COVID-19 Press Conference - The Americas June 11, 2020 Peter Cerdá
Restart Measures to
Restore Passenger
    Confidence
How Good is Cabin Air?
 Modern airplanes equipped with HEPA filters also used in hospitals
 The modern cabin environment offers a low risk of
 transmission, for a number of reasons: passengers
 face the same direction, seatbacks act as barriers,
 air flow is top to bottom, but is also very clean…

 2-3 mins. 50/50
 Cabin air is fully renewed          Mix of HEPA-filtered
 about every 2-3 minutes             and fresh air onboard
 Hospitals ≈ 10 minutes              And this is completely
 Offices ≈ 20 minutes.               changed 20-30 times per hour.

 99.97%                              99.993%
 overall removal                     bacteria/virus removal
 efficiency rating                   efficiency rate
 when tested using a DOP challenge   Including SARS, which is similar   HEPA filters are typically used in hospitals
 or 99.99% when tested with a        to COVID-19, according to
 sodium flame challenge.             independent testing.
                                                                                  and operating rooms.
                                                                                      Source: Pall Aerospace
11
Face-coverings can reduce                             With           Whether breathing,                   Without
COVID-19 transmission                                 mask          coughing or sneezing
                                                                                                           mask
risk, study says
A University of Edinburgh study found
that wearing a face mask or other
covering over the mouth and nose

                                                                               90%
reduces the forward distance
                                                                   more
travelled by an exhaled breath and                                 than
its droplets by more than 90%.                                     less risk of COVID-19
Including: home-made face-coverings; masks with an                 transmission
outlet valve; respirator masks; face-shields.                      if a face-covering is worn, reducing
                                                                   the forward distance travelled by an
                                                                   exhaled breath and its droplets.
Wear a face-covering or mask when you fly.                         University of Edinburgh study
                                                                   www.ed.ac.uk
Remember that face-coverings or masks are only
really effective in combination with frequent and    Tip: any face-covering or mask is more efficient
thorough hand-washing.                               if it fits properly and is worn correctly.

12
COVID-19 Testing
4 Criteria for Implementation:
•   Speed
•   Reliability
•   Scalability
•   Cost
When proven and available at scale,
testing for COVID-19, anti-body
testing, or immunity passports
could also be included as
temporary biosafety measures.

11 June 2020
Quarantine
Quarantine measures equal to keeping
borders closed and the industry
grounded, acting as a deterrant for
travel.

The multi-layered, temporary and risk-
based approach to biosafety measures
provides a solid ground to restore
passengers and Government’s
confidence to open borders without
quarantine requirements.

11 June 2020
Call to Action to Governments across the Region

                     1   Provide financial support to the
                         industry now.

                         Follow ICAO CART Takeoff Guidelines
                     2   to create restart protocol.

                     3   Cooperate with industry to determine
                         specific dates for restart of operations.
Questions?
Peter Cerdá
Regional Vice President The Americas

José Ruiz Llorente
Regional Director, Safety & Flight Operations, The Americas

Alejandro Restrepo
Manager Security & Facilitation The Americas
Restart Plans for International Flights in the Region
As of June 11, 2020

                                             International Flights
                        Country
                                             Restriction End Date
                        Argentina            31 August
                        Antigua              Operating
                        Brazil               Operating
                        Bahamas              30 June
                        Canada               Operating
                        Cayman Islands       31 August
                        Chile                Operating
                        Colombia             31 August
                        Dominican Republic   1 July
                        Ecuador              Operating
                        Honduras             Indefinitely
                        Mexico               Operating
                        Peru                 30 June
                        Panama               22 June
                        United States        Operating
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