The Effects of COVID-19: How the Transport Industry is Responding

COVID-19, also known as the new Coronavirus, has had a drastic effect on many aspects of life the world over. Shelter in place restrictions have caused cities to become ghost towns and the Internet has become an even more central aspect of people’s lives. In addition to impacting supermarket inventories, these changes have had a significant impact on transportation. 

Many people have lost their jobs or are now working from home to adapt to this new, temporary, way of life. This means that much of the transportation demand that used to exist is no more. Additionally, tighter budgets mean less willingness to travel even if restrictions allow it. 

To really understand the impacts of COVID-19 on the transportation industry, it helps to understand how various providers have been affected. You should also understand what actions providers are taking to offset this crisis and what this might mean for the future.

How COVID-19 is Affecting Public Transportation Around the World

As countries have placed increasingly restrictive measures in place and virus numbers have soared, almost all public transportation has been affected. The most drastic drops, outside of China, have occurred since March. This includes bus lines, trains, flights, taxis, and cruise ships.

The amount that transit authorities have been affected depends largely on where in the world they’re located. While many countries responded early on asking people to reduce travel, only a few enforced restrictions partially or wholly until infection rates increased. Some countries still are not enforcing travel restrictions, instead simply encouraging citizens to stay home.

The timing and level of restriction have played a significant role. For example, since the beginning of March, Los Angeles, California ridership has dropped 25% while Rome, Italy has dropped by 84%. This highlights the differences in virus timelines for various areas and is compounded by differences in ridership, to begin with. It is also affected by whether service schedules have been reduced (which most places have) and by how much.

Unfortunately, regardless of location, almost all transit authorities are predicting serious damage to their financial outlooks. Many companies are asking for government relief and most upcoming projects have been postponed indefinitely. Some providers have reported considering or enacting fare increases, such as the Metro Board in DC, to offset financial losses.

Metro Transit’s Response to the Coronavirus

Before the COVID-19 outbreak, or soon after, many transportation organizations had contagious virus plans in place. Likewise, oversight agencies, such as the American Public Transportation Association (APTA), have recommendations in place for epidemic events. 

Metro Transit in the US state of Minnesota is one such organization that has been able to smoothly enact their epidemic response plan. Through local restrictions and reductions in service, their ridership has dropped by 60-90% since the beginning of March. 

As part of their plan, Metro Transit has declared to the public that transportation should only be used for essential travel. This includes transport to essential jobs, buying supplies such as food, getting medical care when not sick, or to provide caretaking services to another. They are also providing free door to door service for healthcare workers to reduce contamination by high-risk individuals.

To further minimize risk, they have recommended that if people do need to take public transit, passengers: 

• Leave space between passengers
• Use the rear door if possible
• Wear face coverings
• Regularly wash hands, including before and after riding

They have also implemented a variety of service restrictions, including:

• No more than 10 riders on 40ft buses and 15 on 60ft buses
• A reduction in the number of vehicles
• No service between 11pm and 4:30am
• Indoor waiting areas are closed
• Service centers and lost and found are closed

How Areas Are Fighting Coronavirus on Public Transportation

While most transport providers are unwilling to completely shut down due to fear of collapse, most are enacting extra precautions. As of April, many areas have enacted at least some level of travel restriction. For some, this has meant a complete ban, such as the case with China and India. Unfortunately, many political bodies have given mixed messages as to whether the public should avoid transportation or not.

To prevent transport collapse and ensure compliance with these restrictions, numerous areas have considered nationalizing private transportation providers. For example, The UK has already taken over service for passenger trains throughout the country. 

Singapore has been one of the most proactive examples. There, transport authorities have adopted thermal scanners to check for passengers with fever before boarding. They have also implemented social distancing stickers to help passengers maintain separation. To help enforce these measures, transport ambassadors have been trained and deployed. 

In addition to proactive measures, providers are also going to great lengths to disinfect transportation facilities. For example, sanitizing and cleaning vehicles, stations, and transport-related fixtures, such as ticketing machines and handrails. Bleach and antiviral sprays have become common in many areas. 

The most responsive providers are cleaning and disinfecting daily. For some, this is done by existing staff or contracted laborers. For others, such as Los Angeles Metro, task forces have been formed, coordinating with the US Center for Disease Control (CDC) and city health officials. In addition to hygiene measures, many are also turning digital, trying to digitize their services and reach out to existing customers in hopes of preserving customer loyalty.

How Airlines React to the Unprecedented Impact of Coronavirus Outbreak

Almost all commercial airlines are reporting to be suffering from the impacts of COVID-19. The International Air Transport Association (IATA) estimated a loss of up to $314 billion. This is due to both restrictions and economic factors. Even countries with more relaxed measures have banned most international travel. If travel is allowed, job losses have significantly reduced many people’s ability to travel.

As a result of losses, many airlines are taking organizational, operational, and financial measures to reduce impact. However, experts expect that smaller lines will go bankrupt despite these measures. Numerous oversight agencies are taking action as well. For example, in the US, a group called Airlines 4 America (A4A) is asking the government for a $58 billion bailout for airlines. 

To highlight some of the individual actions being taken:

• Delta—grounded half its fleet, reduced international travel by 70%, cut 50% of pay to all officers, and 25% of salary to directors and managing directors. They have also said that the CEO and board of directors are going without salary for the next 6 months to offset losses.
• American Airlines—plans to reduce international flights by 75% by May 6 but had not grounded any flights in March.
• United Airlines—reduced capacity by 50% for April and May and possibly into summer and reduced international flights by 85%. They have also said that the CEO and president are going without salary, and all corporate officers' salaries are cut by 50% until further notice. United Airlines is also waiving change fees for flights through April 30.
• Lufthansa—passengers were down by 50% in March. They are specifically operating relief flights to return stranded passengers to their home countries.
• Air France—reduced its schedule by 90% until May. They are currently only handling bookings online and all ticketing offices closed. Only citizens from the European Union, Schengen area, and the UK are permitted to use Air France services. However, they are also allowing all customers to postpone purchased tickets until November.
• International Airlines Group (IAG)—includes British Airways, Aer Lingus, Level, Vueling, and Iberia, has diminished service as well. They have canceled all flights to China and Italy and reduced Asia Pacific routes and are planning to reduce overall capacity by 75%.

Conclusion: Opportunities for Recovery

Although COVID-19 has undoubtedly meant the end of some transport providers, the industry is not hopeless. Once restrictions are lifted and life slowly returns to normal, people will resume traveling. They will need to return to workplaces and will eventually resume traveling for leisure. 

What is likely to be different from before, is that public transit represents a significant opportunity for growth. People are noticing, worldwide, the impacts of travel restrictions on our environment. Clearer streams, less air pollution, and the return of wildlife have been wondrous to many and are likely to increase demand for greener methods of travel. 

In particular, pedestrian walkways, bicycles, and scooters are likely to be in high demand. These alternatives to traditional transportation provide an opportunity for cities and industries to begin focusing on more modern modes. Smart transportation is prime to fill this demand.

Another factor is the heavy economic losses that many people are experiencing. Those who may have been planning to purchase vehicles, or those who already had vehicles that are costly to maintain, may start looking for alternatives. Public transportation authorities can position themselves to fill this role.