, TRL3703 ASSIGNMENT 6 SEMESTER 1 PORTFOLIO ANSWERS - DUE DATE 17 JUNE 2026
QUESTION 1
1.1 Impact of COVID-19 on Low-Cost Carriers (LCCs) Globally and in South Africa
The COVID-19 pandemic severely disrupted the global aviation industry, with low-cost
carriers (LCCs) being among the hardest hit due to their reliance on high passenger volumes,
short-haul routes, and low-cost operating models. When international travel restrictions and
lockdowns were introduced in 2020, global air travel demand collapsed sharply, with overall
passenger numbers dropping significantly across all regions (IATA, 2021). This sudden loss
of demand meant that LCCs lost almost all their revenue while still carrying fixed
operational costs such as aircraft leases, maintenance, and staff salaries.
Globally, airlines such as Ryanair, EasyJet, Southwest Airlines, and AirAsia were forced to
ground large portions of their fleets and cancel most routes. Because LCCs generally have
limited income from cargo or premium services, they were more exposed than full-service
airlines during the crisis (ICAO, 2022). Many airlines implemented drastic cost-cutting
measures including retrenchments, salary reductions, and fleet downsizing. Even strong
carriers like Ryanair reported heavy financial losses, while others required government
support or restructuring to survive (World Bank, 2021).
Recovery after lockdowns was uneven, with domestic travel recovering faster than
international short-haul routes. However, LCCs continued to struggle due to reduced
business travel, changing passenger behaviour, and increased operational costs linked to
health and safety measures such as sanitisation and reduced seating capacity (IATA, 2021).
This highlighted the vulnerability of the low-cost model to global shocks that severely
disrupt passenger demand.
In South Africa, the impact was even more severe due to the already fragile and highly
competitive domestic aviation market. Key low-cost carriers included Mango Airlines,
Kulula.com (Comair), FlySafair, and Lift. During the hard lockdown in March 2020, all
QUESTION 1
1.1 Impact of COVID-19 on Low-Cost Carriers (LCCs) Globally and in South Africa
The COVID-19 pandemic severely disrupted the global aviation industry, with low-cost
carriers (LCCs) being among the hardest hit due to their reliance on high passenger volumes,
short-haul routes, and low-cost operating models. When international travel restrictions and
lockdowns were introduced in 2020, global air travel demand collapsed sharply, with overall
passenger numbers dropping significantly across all regions (IATA, 2021). This sudden loss
of demand meant that LCCs lost almost all their revenue while still carrying fixed
operational costs such as aircraft leases, maintenance, and staff salaries.
Globally, airlines such as Ryanair, EasyJet, Southwest Airlines, and AirAsia were forced to
ground large portions of their fleets and cancel most routes. Because LCCs generally have
limited income from cargo or premium services, they were more exposed than full-service
airlines during the crisis (ICAO, 2022). Many airlines implemented drastic cost-cutting
measures including retrenchments, salary reductions, and fleet downsizing. Even strong
carriers like Ryanair reported heavy financial losses, while others required government
support or restructuring to survive (World Bank, 2021).
Recovery after lockdowns was uneven, with domestic travel recovering faster than
international short-haul routes. However, LCCs continued to struggle due to reduced
business travel, changing passenger behaviour, and increased operational costs linked to
health and safety measures such as sanitisation and reduced seating capacity (IATA, 2021).
This highlighted the vulnerability of the low-cost model to global shocks that severely
disrupt passenger demand.
In South Africa, the impact was even more severe due to the already fragile and highly
competitive domestic aviation market. Key low-cost carriers included Mango Airlines,
Kulula.com (Comair), FlySafair, and Lift. During the hard lockdown in March 2020, all
