Updated September 10, 2021 - airlines.org

Updated September 10, 2021Emerging From the Pandemic

“To suggest that the airlines should have better prepared for this environment seems akin to suggesting Pompeii should have invested more heavily in firefighting technology.” (JPMorgan, Mar. 22, 2020)

2

» After deep losses in 2020, U.S. passenger airlines recorded $4.3B in pre-tax losses in the first half of 2021, which would have been far worse without federal payroll support.

» The sizable associated interest expense will limit their wherewithal to rehire and reinvest.

» After several months of steady increases, new ticket sales have subsided in large part due to a resurgence of COVID-19 cases and hospitalizations.

» Demand for corporate and long-haul international air travel continues to lag, so revenues remain well below 2019 levels and industry cash burn continues.

» While revenue lags, the recovery will remain vulnerable to shocks and cost headwinds.

» Air cargo demand reached an all-time high in 2020 and continues to grow in 2021.

Key Points

3

The 11 Largest U.S. Passenger Airlines Incurred $4.3 Billion in Pre-Tax Losses in 1H 2021Results Boosted Materially by Federal Payroll Support Program (PSP)

1. Sale of frequent flyer award miles to airline business partners, transportation of pets, in-sourced aircraft and engine repair, flight simulator rentals, inflight sales, etc.2. Related primarily to ownership of aircraft, ground support equipment, information technology, etc.3. Aircraft rents, professional fees, food/beverage, insurance, commissions, GDS fees, communications, advertising, utilities, office supplies, crew hotels, payments to regional carriers, etc.

Source: Alaska, Allegiant, American, Delta, Frontier, Hawaiian, JetBlue, Southwest, Spirit, Sun Country and United

Financial Results (in $ Billions) Jan-Jun 2021 % vs. 2019 % of CategoryPassenger (RPMs down 47%, yield down 15%) 37.4 (55) 81.5Cargo 2.6 58 5.6Other1 5.9 (1) 12.9

Total operating revenues 45.8 (50) 100.0Salaries, wages and benefits* 21.6 (17) 45.3Aircraft fuel and related taxes 10.5 (43) 21.9Maintenance materials and repairs 3.1 (28) 6.5Landing fees and airport rentals 5.1 7 10.6Depreciation and amortization2 4.6 (8) 9.7Other3 2.9 (78) 6.1Total operating expenses 47.8 (41) 100.0

Interest and other non-op expenses, net 2.3 116 n/aPre-tax income/(loss) (4.3) (151) n/a

* Includes the benefit of ~$13.5B in federal PSP funds, which extend through Sept. 30, 2021

4

In 2020, Travel-Sector Profitability Took a Massive Hit; Overall Corporate Profitability Was FlatPre-Tax Profit Margin (% of Operating Revenues)

Source: Company SEC filings

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Chipotle Airlines Disney Starbucks All USA Apple Hotels McDonald´s Railroads

2019 2020

Note: Airlines = Alaska/Allegiant/American/Delta/Hawaiian/JetBlue/Southwest/Spirit/United; Hotels = Choice/Hilton/Hyatt/Marriott/Wyndham; Railroads = CSX/Norfolk Southern/Union Pacific

5

The Timing of a Return to 2019 Passenger Volumes Depends in Large Part on Business TravelAnother Open Question Is the Degree to Which Leisure and VFR Traffic Remain Robust in 2022-2023

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U.S. Airline Passenger Traffic Change (%) vs. 2019

2019 Passenger Volumes

Best Case

Worst Case

Note: A = actual; F= forecast

6

A Multiyear, Multistage Recovery Is Underway

Traffic Recovery

Revenue Recovery

Financial Recovery

Reduce Cash Burn

Restore Profitability& Rebuild Margins

Repair Balance Sheets

Contain the Virus

Stabilize the Economy

Increase Efficiency

Aviation-Government Collaboration on Health/Facilitation/Safety/Technology

Business Model Adaptation + Cost-Reduction Initiatives + Debt ReductionCost-Reduction Initiatives + Business Model Adaptation + Debt Reduction

This study is the first comprehensive research looking at the entire inflight experience.

The multiple layers of protection against COVID-19 make being on an airplane as safe as if not substantially safer than other routine activities, such as grocery shopping or going to a restaurant.

The research found that there is a very low risk of virus transmission on airplanes.

The scientists concluded that the ventilation on airplanes is so good that it effectively counters the proximity travelers are subject to during flights.

The Harvard research team surveyed 25 airports of various sizes, performed its own modeling of air quality in airport settings and applied the findings to a comprehensive assessment of research.

The report concludes that airports have been proactive in implementing multiple layers of measures to mitigate the risk of COVID-19 transmission, including face covering requirements, physical distancing, enhanced disinfection processes, enhanced ventilation and deployment of touchless technologies.

Researchers from the Harvard confirmed that this multi-layered approach “significantly mitigates risks” in airport settings.

9

J.D. Power: North America Airline Customer Satisfaction Climbs to Record HighLatest Results Released May 2021

Source: J.D. Power North America Airline Satisfaction StudySM

Note: The 2021 study is based on responses from 2,309 passengers who flew on a major North American airline between August 2020 and March 2021.

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“The airline industry adapted to a most unusual year by simplifying ticketing processes, waiving change fees and baggage fees which were key to persuading people to fly during the pandemic. Airline personnel rose to meet the challenges of a drastically altered travel environment. Maintaining that level of flexibility and recognition of individual passenger needs will be a strategic advantage for airlines that want to set themselves apart in passenger satisfaction as travel volumes start to recover.” (Michael Taylor, J.D. Power, May 12, 2021)

Aircraft Baggage Boarding Check-in Cost and fees Flight crew ReservationIn-flight services

10

U.S. COVID-19 Fatality Rates Are Steadily Approaching Mexico’sNew Confirmed COVID-19 Deaths (7-Day Moving Average) per Million People

Source: Johns Hopkins University Center for Systems Science and Engineering via Our World in Data (a project at the University of Oxford)

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11

In Several Nations, at Least 70% of the Population Has Received at Least One Dose of a VaccineAruba/Belgium/Canada/France/Germany/Ireland/Israel/Italy/Netherlands/Spain/UK: 60%+ Fully Vaxed

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Source: Our World in Data (a project at the University of Oxford using governmental sources) via The New York Times and DOT Data Bank 1B * Partially = received at least one dose of a vaccine as of Sept. 10, 2021

% of Entire Population Vaccinated* in Selected U.S.-International O&D MarketsSorted left to right by U.S.-carrier O&D passenger volume in 2019

12

The EU Has Overtaken the United States With Respect to Percentage of Population VaccinatedQatar/Canada/UK/EU Exceed the USA; Japan Rapidly Closing In

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% of Entire Population Receiving at Least One Dose of a COVID-19 Vaccine

Source: Our World in Data (a project at the University of Oxford using governmental sources)

13

The Global Economy Is Projected to Grow 6% in 2021Wells Fargo Forecasts

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WorldUSA

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JapanCanada

AustraliaChinaIndia

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Source: Wells Fargo Securities (Sept. 9, 2021)

“The most important development in the U.S. economy since our most recent forecast was published on August 12 has been the continued spread of the Delta variant... As a result, Americans have generally become more cautious. The University of Michigan index of consumer sentiment, which was released after our August forecast, plunged to its lowest level since 2011, and the Conference Board’s index of consumer confidence also weakened considerably in August.” (Wells Fargo, Sept. 9, 2021)

Projected 2021 Real GDP Growth (%)

$18.7$19.1

$18.4

$19.5

$20.4

2018 2019 2020 2021F 2022F

U.S. Real GDP (Trillions, $ 2012)

14

In Most Recent Week, U.S. Airline Passenger Volumes Were 18% Below Pre-Pandemic LevelsDomestic Air Travel Down 14%, International Air Travel Down 40%

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7-Day Rolling Change (%) vs. Pre-Pandemic in Onboard Passengers*

* Onboard (“segment”) passengers; “pre-pandemic” precedes March 1, 2020Source: A4A member passenger airlines and branded code share partners

15

In Most Recent Week, U.S. Passenger Airline Departures Were 15% Below Pre-Pandemic LevelsDomestic Flights Operated Down 14%, International Flights Operated Down 30%

Source: A4A member passenger airlines and branded code share partners

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7-Day Rolling Change (%) vs. Pre-Pandemic* in Aircraft Departures

* “Pre-pandemic” precedes March 1, 2020

16

Domestic Load Factor Has Fallen Below Pre-Pandemic Levels

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Weekly Average Domestic U.S. Load Factor* (%)

Source: A4A member passenger airlines and branded code share partners * Revenue passenger miles divided by available seat miles

17

Average Onboard Volumes Have Picked Up on Transoceanic Flights

Source: A4A member passenger airlines and branded code share partners * Onboard (“segment”) passengers

7-Day Moving Average Onboard Passengers* per Flight

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18

U.S. Airline Revenues Are Improving But Remain Below 2019 LevelsRevenues Are Expected to Return to Pre-Pandemic Levels in the Second Half of 2022

Sources: Alaska/American/Delta/Hawaiian/JetBlue/Southwest/United as reported to A4A on a consolidated company basis

A4A Member Airline Operating Revenues: Change (%) vs. 2019

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19

In Most Recent Week, TSA Checkpoint Volumes Fell 19% Below 2019 Levels

Source: Transportation Security Administration

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2019 2020 2021* U.S. and foreign carrier customers (excluding Known Crewmember® personnel) traversing TSA checkpoints

TSA Traveler Throughput* (7-Day Moving Average, in Thousands)

20

In August, Demand Was Notably Strong in Montana, Wyoming and the CaribbeanChange (%) in TSA Traveler Throughput by U.S. State/Territory — August 2021 vs. August 2019

Source: Transportation Security Administration

21

For October, U.S. Airports Are Showing a 16% Decline in Flights vs. Pre-Pandemic LevelsFive States Are Exceeding 2019 Levels; District of Columbia and New York Seeing Largest Cuts

Source: Diio by Cirium published schedules (Sept. 3, 2021) for all U.S. and non-U.S. airlines providing scheduled service to all U.S. and non-U.S. destinations

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Change (%) in U.S. Outbound Scheduled Passenger Flights: Oct-2021 vs. Oct-2019

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Only Three U.S. Airlines Are Deploying More Capacity in October 2021 Than in 2019Allegiant and Spirit Growing the Fastest; United/Delta/Hawaiian Down the Most

Source: Diio by Cirium published schedules (Sept. 3, 2021)

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Change (%) in Systemwide Scheduled Available Seat Miles: Oct-2021 vs. Oct-2019

23

In July 2021, Domestic Air Travel to Hawaii Reached an All-Time HighInternational Air Arrivals Remain Far Below Pre-Pandemic Levels

Source: Hawaii Department of Business, Economic Development & Tourism * Daily passenger counts include returning residents, intended residents and visitors but exclude interisland and Canada passengers

Average Daily Air Passenger Arrivals to Hawaii*20

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On 3/26/2020, Hawai’i mandated a 14-day self-quarantine for out-of-state arrivals. Beginning 10/15/2020, passengers with negative test results for COVID-19 could avoid quarantining. Effective 7/8/2021, the State dropped testing and quarantine rules for fully vaccinated domestic travelers and all restrictions on inter-island travel.

July 2021 Domestic = All-Time High

24

In August 2021, U.S.-International Air Travel* Fell 54% Below 2019 LevelsNon-U.S. Citizen Arrivals Trailed U.S. Citizen Departures by ~20 Percentage Points

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Non-U.S. Citizen Arrivals U.S. Citizen Departures Total

Change (%) vs. 2019 in Total* U.S.-International Air Passengers

Source: U.S. Department of Commerce National Travel and Tourism Office using DHS I-92 / APIS data * Gateway-to-gateway passengers on U.S. and foreign scheduled and charter airlines and general aviation

25

Of the 20 Largest U.S. Country Pairs in August 2019, Five Fell More Than 80% in August 2021U.S.-Mexico/Dominican Republic Saw Volumes Rise

Top-20 U.S. Country Pairs: Change (%) in Passengers* in August 2021 vs. August 2019Sorted left to right by highest volume in August 2019

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* Gateway-to-gateway passengers on U.S. and foreign scheduled and charter airlines and general aviationSource: DHS I-92 / APIS data compiled by U.S. Department of Commerce National Travel and Tourism Office

26

In August, Mexico Was the Clear Leader for U.S.-International Air TravelTop U.S. Country Pairs Propelled by Beach Seekers and Those Visiting Friends/Relatives (VFR)

August 2021: Top-30 U.S. Country Pairs by Total Nonstop Air Passengers* (000)

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ala

Ecua

dor

Gre

ece

Japa

n

Hon

dura

s

Irela

nd

Turk

s &

Cai

cos

U.S. Citizens Others

Source: DHS I-92 / APIS data compiled by U.S. Department of Commerce National Travel and Tourism Office * Gateway-to-gateway passengers on U.S. and foreign scheduled and charter airlines and general aviation

27

In August, Top Three Foreign Gateways to/from USA Were All in Mexico

August 2021: Top-30 Foreign Gateways to/from USA by Total Nonstop Air Passengers* (000)

946

652

354

318

311

308

306

295

295

288

263

262

259

244

237

226

214

180

176

168

158

144

144

138

130

130

129

128

120

117

CU

N

MEX

GD

L

FRA

SDQ

SJD

LHR

CD

G

YYZ

PUJ

MBJ

DO

H

AMS

SAL

PTY

IST

STI

BOG

NAS

PVR

AUA

ICN

SJO

TLV

LIM

DXB KE

F

MAD

GU

A

ATH

U.S. Citizens Others

* Gateway-to-gateway passengers on U.S. and foreign scheduled and charter airlines and general aviationSource: DHS I-92 / APIS data compiled by U.S. Department of Commerce National Travel and Tourism Office

28

Since Mid-July, Growth of Overall and Corporate Ticket Sales Has Reversed Course

Source: Airlines Reporting Corporation (ARC)

(40.7)

(62.3)

(100)

(80)

(60)

(40)

(20)

0

20

12-J

an-2

0

9-Fe

b-20

8-M

ar-2

0

5-Ap

r-20

3-M

ay-2

0

31-M

ay-2

0

28-J

un-2

0

26-J

ul-2

0

23-A

ug-2

0

20-S

ep-2

0

18-O

ct-2

0

15-N

ov-2

0

13-D

ec-2

0

10-J

an-2

1

7-Fe

b-21

7-M

ar-2

1

4-Ap

r-21

2-M

ay-2

1

30-M

ay-2

1

27-J

un-2

1

25-J

ul-2

1

22-A

ug-2

1

19-S

ep-2

1

17-O

ct-2

1

14-N

ov-2

1

12-D

ec-2

1

All Segments Corporate Segment

* Results do not include sales of tickets purchased directly from airlines and are not net of refunds or exchanges.

Change (%) vs. 2019 in Weekly Tickets Sold* by U.S. Travel Agencies

29

Government Data Shows Average Airfares Remain Lower Than Pre-Pandemic Levels

Source: Bureau of Labor Statistics (CPI series CUSR0000SETG01) and DOT Data Bank 1B (all carriers/cabins/fare basis codes)

$381

$404 $411 $413 $418 $414

$383$363

$349 $347

$322

$314

$340$356 $364

$373 $370

$345$336 $330 $333

$316

$234

$200

$250

$300

$350

$400

$450

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Real ($2021) FareNominal Fare

Average 1Q Domestic Round-Trip AirfareFirst quarter of each year

279.

192

304.

773

302.

202

311.

074

311.

679

294.

099

280.

880

273.

574

262.

372

265.

641

202.

801

241.

251

0

50

100

150

200

250

300

350

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

U.S. CPI for Airline Fares (Index: 1982-84 = 100)U.S. city average for July of each year, seasonally adjusted

Down 9% from 2019 and 23% from 2014 Down 32% from 2019 and 44% from 2014

2019

Inde

x: 1

982-

84 =

100

30

In Most Recent Week, Average Airfares on Tickets Sold Were 30% Below Pre-Pandemic LevelsFares Remain Depressed Due Primarily to Dearth of Business and Long-Haul International Travel

(30)(41)

(90)(80)(70)(60)(50)(40)(30)(20)(10)

0

7-Ju

n-20

21-J

un-2

05-

Jul-2

019

-Jul

-20

2-Au

g-20

16-A

ug-2

030

-Aug

-20

13-S

ep-2

027

-Sep

-20

11-O

ct-2

025

-Oct

-20

8-N

ov-2

022

-Nov

-20

6-D

ec-2

020

-Dec

-20

10-J

an-2

124

-Jan

-21

7-Fe

b-21

21-F

eb-2

17-

Mar

-21

21-M

ar-2

14-

Apr-2

118

-Apr

-21

2-M

ay-2

116

-May

-21

30-M

ay-2

113

-Jun

-21

27-J

un-2

111

-Jul

-21

25-J

ul-2

18-

Aug-

2122

-Aug

-21

5-Se

p-21

19-S

ep-2

13-

Oct

-21

17-O

ct-2

131

-Oct

-21

14-N

ov-2

128

-Nov

-21

12-D

ec-2

126

-Dec

-21

Passengers Ticketed Average Fare

* Net tickets and fares (gross sales minus refunds) sold in the United States for future travel to/from U.S. airports

Change (%) vs. 2019 in Weekly Ticket Sales*

Source: A4A analysis of data from Airlines Reporting Corporation (ARC)

Since July 4, net ticket sales* have taken a turn for the worse.

31

The U.S. Travel Association Projects U.S. Business Travel to Return to 2019 Levels in 2024

Source: U.S. Travel Association and Tourism Economics (June 15, 2021)

270

88 116 193 235 271 280

36

7.3 9.1

24 30

35 36 $306

$95$125

$217$265

$306 $316

2019

2020

2021

F

2022

F

2023

F

2024

F

2025

Domestic International

U.S. Business Travel Spending* (Billions)

“Lingering COVID restrictions and a patchwork approach to reopening across the country will prevent the economically crucial business travel segment from recovering until at least 2024… Travel overall is by far the U.S. industry hardest hit by the ongoing fallout of the COVID-19 pandemic.” (U.S. Travel Association, June 2021)

* Includes air and non-air travel

464

181 210

352428

471 474

2019

2020

2021

F

2022

F

2023

F

2024

F

2025

U.S. Domestic Business Trips* (Millions)

32

Airlines Have Coped in Part by Taking on Billions in DebtNet Interest Expense Doubled From 2019 to 2020 and Will Approach $11 Billion in 2021-2022

108

105

163 171

160

155

2018 2019 2020 2021F 2022F 2023F

Year-End Total Debt ($ Billions)

2.0 1.9

3.8

5.6 5.34.8

2018 2019 2020 2021F 2022F 2023F

Interest Expense, Net ($ Billions)

“For 2021 and beyond, we anticipate a major deleveraging cycle as the industry will have no choice but to address its significant debt load.” (Deutsche Bank, “Airline Industry Update,” July 1, 2020)

+$58

B

Source: A4A, equity analysts and filings of Alaska, Allegiant, American, Delta, Hawaiian, JetBlue, Southwest, Spirit and United

33

In 2020, S&P Lowered Its Credit Ratings on Eleven U.S. and Canadian Airlines*Ratings Actions Taken to Reflect Weakened Financial Condition and Heightened Risk

Source: Standard & Poor’s

Alaska Allegiant American Delta Hawaiian JetBlue Southwest Spirit United Air Canada WestJet

15-Mar-20 24-Aug-20 15-Apr-21

BBB+BBBBBB-BB+BBBB-B+BB-CCC+CCCCCC-CCCD

* Publicly traded U.S. carriers in S&P Global coverage universe

A-

34

Ridership on U.S. Intercity Rail Remains Far Below Pre-Pandemic LevelsMay 2021 Ridership Fell 61% Below May 2019

Sources: Bureau of Transportation Statistics

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2019 2020 2021

Monthly Ridership (000s) on U.S. Intercity Passenger Rail*

* Passengers transported on Amtrak and Alaska Railroad operations

35

For U.S. Airlines, Growth in Air Cargo Continues to Outpace Air Travel by a Large Margin

Sources: Bureau of Transportation Statistics T1 for all U.S. airlines providing scheduled and nonscheduled services

19.3

(37.6)

(100)(80)(60)(40)(20)

02040

Jan-

20

Mar

-20

May

-20

Jul-2

0

Sep-

20

Nov

-20

Jan-

21

Mar

-21

May

-21

Jul-2

1

Sep-

21

Nov

-21

Jan-

22

Cargo Traffic (RTMs) Passenger Traffic (RPMs)

Change (%) vs. 2019 in Traffic* – U.S. Passenger and Cargo Airlines

* RTMs = freight, mail and express revenue ton miles; RPMs = revenue passenger miles

36

The Pandemic Has Taken a Material Toll on U.S. Airline EmploymentVoluntary Reductions, Retirements, Job Changes, Employer Shutdowns and Other Factors at Play

Source: Bureau of Transportation Statistics based on payroll near the 15th of the month

Carrier Universe Scheduled U.S. Passenger Airlines

All U.S. Passengerand Cargo Airlines

Measure FTEs* (000) Headcount (000)

All-Time High Jun-2001: 545.9 May-2001: 760.8

Post-2000 Low Point Apr-2010: 376.7 Apr-2010: 562.3

Pre-COVID Peak Feb-2020: 458.2 Feb-2020: 753.4

Latest Available Data Point Jun-2021: 394.3 Jul-2021: 715.3

* Full-time equivalents (FTE) = full-time workers plus 0.5 * part-time workers

37

As of June 2021, U.S. Passenger Airline Employment Was 64K FTEs Below Pre-COVID LevelsMore Jobs Were Lost From Feb-Nov 2020 Than Were Added Over the Preceding 10 Years

Source: Bureau of Transportation Statistics for scheduled U.S. passenger airlines (i.e., all that report scheduled passenger revenue)

Jun-2001, 545.9

Apr-2010376.7

Feb-2020458.2

Nov-2020363.4

Jun-2021394.3

325350375400425450475500525550

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

U.S. Scheduled Passenger Airline Full-Time Equivalent Employees (000s)

All-Time High

Lowest Since 1Q87

Pre-COVID Peak

Down ~169K (31%)

Up ~82K (22%)

Lowest Since 2Q86

38

U.S. Passenger Airlines Have Grown the Active Fleet by 649 Units Since the End of 2020Net Reduction of 1,109 (19%) From YE19 to YE20 and 460 (8%) From YE19 to 8/31/2021

Number of Active Aircraft*

1,810 1,517 1,610

3,475 2,847 3,328

495

307 382

5,780

4,671 5,320

12/31/2019 12/31/2020 8/31/2021

Regional Single-Aisle Twin-Aisle

Source: Anuvu (formerly Global Eagle masFlight) * Operated by or on behalf of Alaska/Allegiant/American/Delta/Frontier/Hawaiian/JetBlue/Southwest/Spirit/Sun Country/United in any of the previous seven days

-1,109 +649

39

After 9/11 and the Global Financial Crisis, It Took Years for Air-Travel Demand to RecoverPassenger Volumes Took More Than Seven Years to Recover From the Financial Crisis/Oil Spike

Source: A4A Passenger Airline Cost Index, BTS (Form 41 Schedule T1) and Bernstein Research

Four-Quarter Rolling Passenger Volume (Millions) and Operating Revenues (Billions)

$0

$50

$100

$150

$200

$250

0100200300400500600700800900

1,000

4Q00

4Q01

4Q02

4Q03

4Q04

4Q05

4Q06

4Q07

4Q08

4Q09

4Q10

4Q11

4Q12

4Q13

4Q14

4Q15

4Q16

4Q17

4Q18

4Q19

4Q20

4Q21

4Q22

4Q23

4Q24

4Q25

4Q26

4Q27

4Q28

4Q29

4Q30

Passengers Enplaned (Mils) Operating Revenues ($ Bils)

* Passengers enplaned systemwide on U.S. airlines in scheduled and nonscheduled services

9/11 Terrorist Attacks

Global Financial Crisis+

$100/bbl Crude Oil

40

Air-Cargo Demand Reached an All-Time High in 2020 and Continued to Grow in 1Q 2021Air Cargo Had Taken 10 Years to Recover From the Global Financial Crisis and Subsequent Oil Spike

Source: Bureau of Transportation Statistics (Form 41 Schedule T1)

Four-Quarter Rolling Air Cargo Revenue Ton Miles* (Billions)

48.8

0

10

20

30

40

50

60

4Q00

4Q01

4Q02

4Q03

4Q04

4Q05

4Q06

4Q07

4Q08

4Q09

4Q10

4Q11

4Q12

4Q13

4Q14

4Q15

4Q16

4Q17

4Q18

4Q19

4Q20

4Q21

4Q22

4Q23

4Q24

4Q25

4Q26

4Q27

4Q28

4Q29

4Q30

* Cargo revenue ton miles (RTMs) flown on U.S. passenger and cargo-only airlines in scheduled and nonscheduled services

9/11 Terrorist Attacks

Global Financial Crisis+

$100/bbl Crude Oil

41

Pandemic-Driven Technology Acceptance, Digital Competence and Enhanced Cleaning Protocols Will Endure, and Airlines and Airports Will Continue to Invest Accordingly

Source: McKinsey & Company interview with Massachusetts Port Authority CEO Lisa Wieland (Nov. 20, 2020)

“COVID-19 has brought about an acceleration of digital competency across demographic cohorts. We have a lot of different people who fly through the airport. We are constantly thinking about the experience we present to them. And if people have become more technology savvy, more digitally competent, that means we can accelerate and roll out the contactless passenger journey across many platforms—and there will be an acceptance of and a desire for them.”

“Airports and airplanes are cleaner than they’ve ever been and will continue to be that way because it’s important for restoring confidence in air travel. We expect the new hygiene and enhanced-cleaning protocols we’ve implemented to continue. Passengers can expect that from airports and airlines going forward.”

42