Zoom is now worth more than the 7 largest airlines in the world

By: Gabriela Ryczek
Created: 30 May 2020 - 12:05
Updated: 31 May 2020 - 12:05

A popular video conferencing company, Zoom Communications, is a great example of an organization that has benefited from a coronovirus pandemic. As at May 15, 2020, Zoom's market value increased sharply to USD 48.8 billion, even though last year it recorded revenues of just USD 623 million. The company is now more worth than the 7 largest airlines in the world (United Airlines, Delta, Southwest, American Airlines, IAG-International Airlines Group, Lufthansa, Air France - KLM)   Analysts say that business users download this application because of its easy interface, as well as the ability to support up to 100 participants at the same time. The tool is also popular with teachers who use it in online teaching. The number of Zoom users has increased in recent months, from 10 million in December 2019 to 300 million in April 2020.   The aviation industry, however, found itself at the other end of the list, suffering from an unprecedented drop in demand, because restrictions around the world have caused a dramatic drop in demand for air travel and the closure of many airports. Since the end of January, the largest global airlines have lost 62% in terms of revenues. In countries that are trying to stop the spread of COVID-19, many carriers have reduced operations, reduced staffing, and reduced executive pay. Whether regular air travel will return remains a major question mark, and even patient investors such as Warren Buffett have withdrawn from their investment in the aviation sector.