The airline industry, which was dealt a severe blow
by the pandemic, shows the signs of recovery in America and Asia, judging by
the number of planes in the skies over major airports in the two continents.
If the latest trend continues in the face of accelerated
vaccine drives, the analysts estimate that 2/3 of the flights of pre-pandemic
time will be back in the air soon.
In proportion to the growth, there will be a
corresponding increase in demand for jet fuel, gasoline and diesel as the
sectors revolve around the airline industry grow as well.
In China too, passenger number on airplanes are
rising and the skies are busier with activities close to the pre-pandemic
level. That means, jet fuel demand in Asia continues to rise.
In Europe, however, the picture is still
gloomy: Germany, France, Italy, Poland
and Ukraine are on the verge of going back to lockdowns. To make matters worse,
the politicians are wrangling over the vaccines, their origin and the side
effects, even when the risk posed by the latter is statistically insignificant.
If Europe gets this wrong again, Europeans will lose
the second successive summer in two years; its impact will severely affect European
airlines – other airlines too – and the entire tourism sector.
In a separate development, however, the EIA, US
Energy Information Administration, was not impressed with the rising number of
planes in the air; it says the demand of jet fuel will not recover for a
considerable time; nor will the passenger numbers.
Whether the EIA will revise its forecast in the
coming months, is something that the industry analysts watch with increased focus,
as it is going to have significant consequences.
