Airlines May Lose $84.3 Billion In 2020 Due To COVID-19: IATA

Airlines globally are expected to lose $84.3 billion in 2020: International Air Transport Association (IATA) on Tuesday, 9 June.

According to IATA’s financial perspective for the global air transportation industry, airlines are expected to lose $ 84.3 billion in 2020 for a net profit margin of (-) 20.1 percent.

Airline industry revenue is expected to decrease 50 percent to $ 419 billion from $ 838 billion in 2019. In 2021, losses are expected to decrease to $ 15.8 billion as revenue increase to $ 598 billion, according to the forecast.

2020 will be the worst financial year in the history of aviation. On average, every day this year will add $ 230 million to industry losses.

In total, that’s a loss of $ 84.3 billion, IATA Director General and CEO Alexandre de Juniac said in a statement.

“It means that – based on an estimate of 2.2 billion passengers this year – airlines will lose $37.54 per passenger. That’s why government financial relief was and remains crucial as airlines burn through cash,” he said.

According to him, as long as there isn’t a more damaging second wave of Covid-19, the worst of the traffic crash is probably over.

“A key to the recovery is universal implementation of the re-start measures agreed through the International Civil Aviation Organisation (ICAO) to keep passengers and crew safe.

And, with the help of effective contact tracing, these measures should give governments the confidence to open borders without quarantine measures,” he said.

“That’s an important part of the economic recovery because about 10 percent of the world’s GDP is from tourism and much of that depends on air travel. Getting people safely flying again will be a powerful economic boost,” he added.

At present, IATA represents some 290 airlines comprising 82 percent of global air traffic.

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