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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] The aviation industry is feeling the effects of U.S. President Donald Trump's protectionist and anti-immigration policies, which have led to stricter entry procedures and a decline in travel demand. As a result, many travelers are avoiding trips to the United States, while the trade war has led to a decrease in cargo transport demand.
According to Germany’s rbb broadcasting on April 25, as demand for U.S. flights decreases, airlines have begun offering significant discounts on airfares. For example, round-trip tickets from Berlin, Germany, to New York, U.S., can now be purchased for less than 300 euros (approximately $490).
The International Trade Administration (ITA), under the U.S. Department of Commerce, reported that the number of foreign nationals arriving in the U.S. by air dropped by 9.7% in March, compared to the same period last year. U.S. arrivals from European nationals decreased by 14.3% during this period.
In Europe, a self-imposed "boycott" of the U.S. due to the ongoing tariff dispute, combined with reports of excessive body searches or even deportations during the entry process, has led many travelers to cancel their planned trips to the U.S.
The aviation and transportation industries are also bracing for a decrease in cargo transport demand, as the U.S. tariff policies are set to take full effect. Starting May 2, the U.S. government will impose tariffs on parcels from China valued at under $800 (approximately 115,000 KRW). In response, Hong Kong-based Cathay Pacific has announced plans to adjust its cargo flight routes to the U.S.
Airlines are also concerned that the imposition of mutual tariffs between the U.S. and the European Union could delay the introduction of new aircraft, which can cost billions of dollars per plane. The global aircraft market is dominated by U.S.-based Boeing and Europe’s Airbus, raising concerns that trade wars could be used as leverage in future negotiations. China has already retaliated by rejecting the purchase of Boeing aircraft, marking a counterattack against U.S. tariff measures.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
