Asian air travel could take 3 years to recover from coronavirus pandemic, lagging behind rest of the world

The drawn-out timeline, due in part to low rates of vaccination in some countries and the fast-spreading Delta variant, are unwelcome signs for fuel refiners

Some countries such as Singapore are rethinking their Covid-zero stance to open up, but international travel will take longer than the rest of the world to restart

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Tourists wearing face masks disembark after arriving at Koh Samui in Thailand. Photo: AFP

Published: 10:54am, 15 Jul 2021Updated: 8:11pm, 15 Jul 2021

Asian air travel may take another three years to recover fully from the devastation wrought by the pandemic, lagging behind rebounds in other regions and offering a stern headwind for refiners making jet fuel.

It will take until 2024 for international air travel across the region to reach pre-virus levels, a year after global traffic hits that milestone, according to the International Air Transport Association. Similarly, consultancy Energy Aspects says jet fuel consumption will reach pre-pandemic volumes only in 2023-2024.

The drawn-out timelines highlight the difficulties facing Asia and the likely consequences for jet fuel, a traditionally prized part of the oil products market. Low rates of vaccination in many countries, the challenge posed by the fast-spreading Delta variant and persistent lockdowns have all set back the recovery even as the US and Europe press on. All that means Asia’s aviation industry is unlikely to offer significant support to the region’s hard-pressed refineries, which process crude from the Middle East and elsewhere into fuels.

Both North America and Europe have seen strong demand during the holidays, with the European Union relaxing quarantine and lockdown requirements, according to Mayur Patel, regional sales director for Japan and Asia Pacific at OAG, an aviation analytics firm.

“Sadly, the same cannot be said for Asia, where the low level of vaccination rates, sudden and sharp lockdowns, and inconsistent regulations frustrate any real attempt at a recovery,” he said.

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Just this week, Indonesia – the largest economy in Southeast Asia – surpassed India’s tally of daily cases, marking a new centre for the highly contagious Delta variant. Elsewhere, Malaysia has been struggling to contain a recent outbreak, Seoul in South Korea has imposed its toughest restrictions yet and Japan is preparing to host the Olympic Games without spectators.