Testing the differentiated impact of the COVID-19 pandemic on air travel demand considering social inclusion

Autor(es)

Santos, Luca J. ^[1] ; Oliveira, Alessandro V. M. ^[1] ; Aldrighi, Dante Mendes ^[2]

Afiliação do(s) autor(es)

^[1] Aeronaut Inst Technol, Ctr Airline Econ, Sao Jose Dos Campos - Brazil

^[2] Univ Sao Paulo, Sao Paulo - Brazil

• Tipo de documento: Artigo Científico
• Fonte: JOURNAL OF AIR TRANSPORT MANAGEMENT; v. 94, JUL 2021.
• Citações Web of Science: 0

Resumo

The economic downturn and the air travel crisis triggered by the recent coronavirus pandemic pose a substantial threat to the new consumer class of many emerging economies. In Brazil, considerable improvements in social inclusion have fostered the emergence of hundreds of thousands of first-time fliers over the past decades. We apply a two-step regression methodology in which the first step consists of identifying air transport markets characterized by greater social inclusion, using indicators of the local economies' income distribution, credit availability, and access to the Internet. In the second step, we inspect the drivers of the plunge in air travel demand since the pandemic began, differentiating markets by their predicted social inclusion intensity. After controlling for potential endogeneity stemming from the spread of COVID-19 through air travel, our results suggest that short and low-density routes are among the most impacted airline markets and that businessoriented routes are more impacted than leisure ones. Finally, we estimate that a market with 1% higher social inclusion is associated with a 0.153%-0.166% more pronounced decline in demand during the pandemic. Therefore, markets that have benefited from greater social inclusion in the country may be the most vulnerable to the current crisis. (AU)

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