Impact of COVID-19 on Aviation Industry

The Impact of COVID-19 on the Aviation Industry

The COVID-19 pandemic brought drastic changes to many industries. One industry that saw some of the biggest effects is aviation. What has this meant for airlines and pilots? Read on to learn more about the impact of COVID-19 on the aviation industry over the last couple of years, and how we can address what’s expected next!

A decrease in demand for flights — that’s starting to pick back up

As a response to COVID-19, countries all over the world closed their borders, trips were canceled, and airlines reduced the capacities on their flights. According to Statista, a 2019 growth in global air traffic passenger demand of 4.1% was followed by a global decline of at least 2.8 billion passengers in 2020. However, things have already begun to increase, though still not to pre-COVID levels. On January 25, 2021, the Transportation Security Administration (TSA) screened nearly 468,933 passengers at US airports, and that number increased to 1.06 million passengers on the same weekday in 2022.

Statistic: Daily number of passengers screened at TSA checkpoints in the United States from January 2019 to January 2022 | Statista
Find more statistics at Statista

A need for more pilots

While 2020 saw the demand for pilots come to a halt, the threat of a pilot shortage had long been looming. In fact, a 2019 Oliver Wyman poll of flight operations leaders noted that 62% of respondents listed a shortage of qualified pilots as a key risk, with the root cause of the anticipated shortage in the US being “an aging workforce facing mandatory retirement, fewer pilots exiting the military, and barriers to entry, including the cost of training.” The shortage then turned into a surplus in 2020, as fewer flights led to a smaller need for pilots.

However, this surplus isn’t expected to last, and according to Oliver Wyman, it’s not a matter of if, but of when. “Based on a modest recovery scenario, [they] believe a global pilot shortage will emerge in certain regions no later than 2023 and most probably before. However, with a more rapid recovery and greater supply shocks, this could be felt as early as late this year. Regarding magnitude, in [their] most likely scenarios, there is a global gap of 34,000 pilots by 2025. This could be as high as 50,000 in the most extreme scenarios.” Currently, The Bureau of Labor Statistics projects a 13% increase in available jobs from 2020 to 2030 — which is, as you may have guessed, faster than the average.

What can we do to address this need?

With the need for more pilots comes the question: “How do we get more pilots?” Even though aviation can be a lucrative career choice, and aviation schools are stepping up to the plate to train more pilots, for many people the cost of a program can be too high a barrier to clear. Offering diverse payment options to prospective students — such as payment plans, student loans, or partnerships with airlines for employer reimbursement — will allow more people to enroll in flight schools and get the training required to become a pilot.

Because we recognized the distinct need for increased access to pilot training, Climb recently launched a new payment technology solution specifically for aviation programs. If you’d like to learn more about how we can help your school meet the coming demand for pilot training, reach out to our team through the form below. And below, hear from Climb team member Lily Cohen as she talks with 2MQ Consulting CEO Monica Meadows about financing options for aviation programs!

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What to Expect: Realistic Outcomes

Climb’s Comprehensive Access Solution can offer a strategic balance of increased enrollments and upfront cashflows compared to traditional lenders. While no financing solution guarantees 100% collection, our data-driven approach maximizes both upfront cash and long-term repayment rates.

Typical Partner Results:

  • 15-30% of students qualify for Climb Loans with upfront tuition delivered to the school shortly after course start
  • 45-60% of students qualify for 0% APR* payment plans
  • Enrollment increases of 20%+ reported by partner schools**

**Results vary by school and student demographics. This represents performance reported by individual school partners and should not be considered a guarantee of your specific outcomes.

The bottom line: CAS is designed to maximize your net tuition recovery while eliminating the administrative headaches of student financing.

Maximizing Your Results

Pro Tip: Schools that require student deposits and set up automatic payments during enrollment see significantly better repayment performance across all financing options. These simple steps can meaningfully improve your outcomes.

FAQs

We use a comprehensive, AI-driven assessment that goes beyond traditional FICO scores to better serve career training students:

  • Climb Credit Score: Over 150 data points specifically designed for vocational students
  • Debt-to-Income Ratio: Reliable predictor of payment performance
  • FICO Score: Used primarily for interest rate assignment

Key advantages of our approach:

  • Soft credit pull until loan funding (no credit impact during application)
  • The majority of students receive instant decisions
  • Students can apply with co-borrowers directly in the application
  • More accurate placement into appropriate financing products

We use a comprehensive, AI-driven assessment that goes beyond traditional FICO scores to better serve career training students:

  • Climb Credit Score: Over 150 data points specifically designed for vocational students
  • Debt-to-Income Ratio: Reliable predictor of payment performance
  • FICO Score: Used primarily for interest rate assignment

Key advantages of our approach:

  • Soft credit pull until loan funding (no credit impact during application)
  • The majority of students receive instant decisions
  • Students can apply with co-borrowers directly in the application
  • More accurate placement into appropriate financing products

Students are placed into funding brackets (Elite, Standard, Enhanced) based on our AI assessment. Higher-credit students generate higher upfront payments to your school, while students with limited credit are seamlessly directed to our 0% Payment Plan.

These brackets are established using data from over $1 billion in career training loan originations and may be adjusted periodically based on updated repayment trends.

Important note: Regardless of which bracket a student falls into, they are considered fully paid by your school once funded. The student’s repayment obligation exists exclusively between Climb and the student.

Elite Access not available for Computer Science programs. Upfront percentages vary by industry and loan terms.

Once Climb disburses upfront funding for a student loan, that student is considered fully paid by your school. You will not receive any additional payments for that student—the single upfront payment is complete and final.

From that point forward, the student’s repayment obligation exists exclusively between Climb and the student. Your school has zero liability if the student defaults, and you keep the full upfront payment regardless of the student’s future payment performance.

They’re automatically offered our 0% Interest Payment Plan, ensuring no student is turned away while maintaining steady monthly cash flow for your school.

Higher-credit students generate larger upfront payments (75-100% of tuition), while students with limited credit use our 0% APR* Payment Plan for consistent monthly revenue. Both options are risk-free for your school

Absolutely. Climb complements existing payment options like scholarships, employer-sponsored programs, and internal financing.

Absolutely. Climb complements existing payment options like scholarships, employer-sponsored programs, and internal financing.

Typically, within 5-10 business days after your partnership agreement is signed.

Comprehensive onboarding webinar, continuous partner support via AI-assisted chat and live email—and real-time borrower assistance with our live-chat-available student success team.

No. Climb fully manages the administrative responsibilities—your team simply monitors your school’s performance via our intuitive School Portal.

Your school is fully protected either way. For Climb Loans, you keep the entire upfront payment with zero liability. For Payment Plans, you only receive what students actually pay, with no risk to your school.