These are the major industries destroyed by coronavirus pandemic currently sweeping the earth in 2020. The failure rate of these industries has caused financial analysts to run wild with predictions of an imminent Great Depression while others sip tea nervously proclaiming a ‘V shaped’ recovery.
They are the business models that are most affected by the need to restrict the movement and social interaction between human beings and broadly between the various economies of the different nations.
Not all industries have been destroyed by the virus, some have experienced a major boost BUT for most industries, the coronavirus has been an absolute disaster.
One of the hardest hit industries destroyed by coronavirus in the world is the Airline Industry.
By the month of June, 2020, the number of scheduled flights worldwide decreased by 65.1% when compared to the month of June 2019. On March 22, 2020, airline capacity in Europe was down by almost 88% compared to the same day in 2019.
The estimated Airline revenue loss worldwide due to the coronavirus outbreak stands at $314 billion.
President Donald Trump recently signed the stimulus bill that includes $58 billion in aid for Airlines, $29 billion in payroll grants for workers, and $29 billion in loans for the airlines. Notwithstanding many airlines around the world will be irreversibly bankrupt by the end of 2020.
The coronavirus (COVID-19) pandemic is causing a decrease in hotel occupancy rates and the lodging industry has joined one of the many industries destroyed by coronavirus in the United States.
As a result, employment in the hotel sector could also see a significant drop. If occupancy rates were to drop by 50% alone in the U.S., this would potentially result in a loss of 6.5 million jobs in the hotel sector in 2020.
Empty hotels have been the order of the day since the start of the coronavirus pandemic with the heightened need for social distancing implementation.
The fitness industry is one of the many industries destroyed by the Coronavirus lock down period with many fitness enthusiasts favouring home workouts rather than getting Gym memberships.
With brands like Peloton Interactive offering do-it-yourself installation and selling stationary bikes equipped with a screen that shows subscription workout classes, the era of gym memberships could be over for good.
Peloton saw its quarterly sales surge by 65% and the number of it’s subscribers almost doubled to 886,100 in the quarter ended March 31, which includes the first weeks when the spread of coronavirus closed gyms and prompted many Americans to shelter at home.
Peloton isn’t the only lucky cat in the milk jar, as fitness company Beachbody has reportedly experienced a 200% growth in subscribers (approximately 1.5 million subscribers) since shifting to online classes.
The sports industry is another one of the industries destroyed by coronavirus. The COVID-19 pandemic has single handedly disrupted most sporting calendars, with professional leagues everywhere suspending their activities to limit the spread of the virus.
Even the Summer Olympics, typically one the world’s most-watched sporting broadcasts, has been pushed back by a year.
The global sports market reached a value of nearly $488.5 billion in 2018, having grown at a compound annual growth rate of 4.3% since 2014, and was expected to continue to grow by 5.9% to nearly $614.1 billion-that is until the coronavirus hit and everything ground to a screeching halt.
The coronavirus took a huge chunk out of the various sports earnings with the NBA announcing a more than 50% drop in income as well as plans to massively slash player contracts while the Premier League clubs braced themselves for a $60-150 million revenue loss.
OIL & GAS INDUSTRY
The Oil & Gas Industry was one of the industries destroyed by coronavirus and it wasn’t just destroyed, it was decimated. United States Oil prices went below zero for the first time in history on April 20th, 2020.
This drove financial analysts wild with not just predictions of a recession, a hyperinflation and a great depression but the start of the Armageddon.
In the midst of all the mayhem, oil companies had to halt production and destroy their product just to get by without space to store the excess oil.
Currently, oil prices are around $40 per barrel but the disaster caused by the pandemic left the oil & gas industry bleeding billions of dollars.These losses will take the industry many years to recover from and will continue to cause ripple effects on the global economy.
Statista:Coronavirus: impact on the aviation industry worldwide – Statistics & Facts
Weforum.org: What the future may hold for Oil amidst Covid-19