Omicron Variant Unlikely to Result In Long-Term Setback for Aviation Recovery, Says GlobalData

Following the growing spread of the Omicron variant and concerns over how it may impact the aerospace market; Madeline Wild, associate defense analyst at GlobalData, a leading data and analytics company, offers her view:

“Aviation bosses are likely feeling a sense of déjà vu as the Omicron variant threatens to disrupt aerospace activity. In the commercial domain, new travel restrictions are an unwelcome addition to current regulations, having the potential to slash passenger numbers and reduce both revenues and profits. While it is undeniable that this will have a tangible impact on aviation, it is worth noting that the scale of disruption is currently far smaller than that seen in previous waves of the pandemic when air travel all but ground to a halt.

“The risk of intense supply chain disruption is thankfully reduced by increasing vaccination rates, which, in turn, lessens the chance of mass shutdown of manufacturing hubs. Order fulfilment should help to keep the industry moving while the world adjusts to the Omicron variant’s presence. As such, while travel restrictions may impact profits from commercial aviation in the short term, the wider aerospace industry will be buffered from the Omicron variant thanks to the ongoing rollout of vaccines, booster jabs and the resilience learnt from previous waves.”