, TRL3703 ASSIGNMENT 6 PORTFOLIO SEMESTER 1
DUE DATE: 17 JUNE 2026
QUESTION 1
The Impact of COVID-19 on Low-Cost Carriers Globally and in South Africa
The COVID-19 pandemic had a profound impact on the global aviation industry, particularly
on low-cost carriers (LCCs), whose business model depends on high passenger volumes,
rapid aircraft utilisation and low operating costs. Following the outbreak of the virus in 2020,
governments across the world implemented lockdowns, border closures, quarantine
requirements and travel restrictions to limit the spread of the disease. These measures
resulted in an unprecedented decline in passenger demand and created severe financial and
operational challenges for airlines worldwide. As a result, low-cost carriers experienced
significant disruptions to their operations, revenue streams and long-term sustainability
(International Air Transport Association [IATA], 2021).
Globally, low-cost carriers such as Ryanair, easyJet, Southwest Airlines and AirAsia were
forced to suspend numerous routes and reduce flight frequencies as passenger demand
collapsed. According to Gudmundsson, Cattaneo and Redondi (2021), the aviation sector
experienced one of the worst crises in its history, with airlines facing dramatic reductions in
passenger traffic and revenue. Because LCCs rely heavily on maintaining high load factors
and operating aircraft frequently to maximise profitability, travel restrictions severely
undermined their business model. Thousands of aircraft were grounded at airports around
the world, while airlines continued to incur fixed costs such as aircraft leasing, maintenance
and employee salaries despite limited operations.
The pandemic also created substantial financial difficulties for low-cost carriers. Many
airlines reported significant losses and implemented cost-cutting measures to survive. These
DUE DATE: 17 JUNE 2026
QUESTION 1
The Impact of COVID-19 on Low-Cost Carriers Globally and in South Africa
The COVID-19 pandemic had a profound impact on the global aviation industry, particularly
on low-cost carriers (LCCs), whose business model depends on high passenger volumes,
rapid aircraft utilisation and low operating costs. Following the outbreak of the virus in 2020,
governments across the world implemented lockdowns, border closures, quarantine
requirements and travel restrictions to limit the spread of the disease. These measures
resulted in an unprecedented decline in passenger demand and created severe financial and
operational challenges for airlines worldwide. As a result, low-cost carriers experienced
significant disruptions to their operations, revenue streams and long-term sustainability
(International Air Transport Association [IATA], 2021).
Globally, low-cost carriers such as Ryanair, easyJet, Southwest Airlines and AirAsia were
forced to suspend numerous routes and reduce flight frequencies as passenger demand
collapsed. According to Gudmundsson, Cattaneo and Redondi (2021), the aviation sector
experienced one of the worst crises in its history, with airlines facing dramatic reductions in
passenger traffic and revenue. Because LCCs rely heavily on maintaining high load factors
and operating aircraft frequently to maximise profitability, travel restrictions severely
undermined their business model. Thousands of aircraft were grounded at airports around
the world, while airlines continued to incur fixed costs such as aircraft leasing, maintenance
and employee salaries despite limited operations.
The pandemic also created substantial financial difficulties for low-cost carriers. Many
airlines reported significant losses and implemented cost-cutting measures to survive. These
