Airlines are expected to lose $ 84 billion as the coronavirus pandemic halves revenues to mark the industry’s worst year in history, the International Air Transport Association (IATA) announced on Tuesday.
With most of the world‘s airliners currently parked, IATA said revenues are likely to drop to $ 419 billion from $ 838 billion last year.
“Every day this year, $ 230 million will add to the industry’s losses,” said IATA director general Alexandre de Juniac.
The average loss amounts to almost $ 38 per passenger traveled.
In 2021, IATA warned that losses could reach $ 100 billion as traffic struggles to recover and airlines are cutting fares to earn business.
“Airlines will still be financially fragile in 2021,” said De Juniac, predicting “even more intense” competition.
“This will translate into strong incentives for travelers to resume flight,” he added.
IATA projects revenue growth from 2021 to $ 598 billion.
Airlines are counting the cost of weeks of lost business, a debt heap swollen with bailouts and a weaker demand outlook.
Passenger numbers are expected to drop to 2.25 billion this year before rising to 3.38 billion in 2021, more than 25% below 2019 levels.
Yields, an indirect indicator of fares, are expected to drop 18% this year, contributing to a $ 241 billion drop in passenger revenues.
Freight, a relatively small share of overall activity, has brought some relief as massive aircraft downturns have driven up prices by as much as 30%, IATA said, contributing to a business close to 111 billion dollars.
Even in markets where COVID-19 infection rates have plummeted, airlines still face a patchwork of travel restrictions and suspicious consumers.
The 14-day quarantine for arrival passengers introduced by Britain this week has sparked anger and legal threats from the travel industry amid reports that it may be relaxed. take advantage of “air corridors” to certain destinations.
(This story has not been edited by GalacticGaming staff and is automatically generated from a syndicated feed.)
