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US aviation sees major changes since COVID-19 pandemic

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US aviation sees major changes since COVID-19 pandemic
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Airbus A380 | Airbus

In the early months of 2020, as the COVID-19 pandemic spread globally, the aviation industry faced an unprecedented shutdown. Passenger numbers plummeted, airline stocks dropped, and carriers struggled to survive with almost no travelers. Over four years later, while the industry has recovered, it remains fundamentally altered by the pandemic's impact.

COVID-19 reshaped route networks and business models, forcing some airlines out of the market while others expanded. The pandemic permanently changed passenger expectations and how they choose airlines.

"Budget airlines today are experiencing financial difficulties," highlighting a shift from their previous profitability. Before the pandemic, low-cost carriers like Spirit Airlines boasted high profit margins but now face increased operational costs and competition from legacy airlines targeting budget-conscious travelers. Issues with aircraft like the A320neo and 737 MAX have further hindered fleet growth for these carriers.

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Legacy airlines have adapted by operating more point-to-point routes instead of strictly following hub-and-spoke strategies. This flexibility is evident in new routes bypassing traditional hubs, connecting leisure travelers directly to destinations such as Tampa to Amsterdam or Boston to London.

Premium economy cabins have become standard on long-haul flights for US carriers post-pandemic. These cabins offer passengers an upgrade without paying for business class seats. United, American, and Delta have incorporated premium economy across most of their long-haul fleets.

Airlines are also serving smaller destinations in Europe and Asia more than ever before. The introduction of aircraft like the Boeing 787 has made these routes feasible. United Airlines plans to serve cities like Ulaanbaatar in Mongolia as part of this trend towards seasonal services targeting leisure travelers.

Loyalty programs have gained importance due to economic conditions such as high fuel prices and inflation. "Cobranded credit card partnerships are especially vital," allowing airlines like United, Delta, and American to offer rewards that encourage passengers' loyalty despite competitors' lower fares.

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