“The carriers in Asia-Pacific will experience the largest losses at $29 billion. That’s a loss of $30.09 per passenger. 2020 is the worst year in aviation history and airlines are in survival mode,” said IATA.
Airlines in India will experience losses of $11.6 billion in 2020. This is the worst region for aviation thanks to the coronavirus pandemic, Conrad Clifford, Iata’s regional vice president for Asia Pacific said in the statement.
Air passenger traffic in India is expected to decline by 49% during 2020, compared with the previous year.
The COVID-19 pandemic could result in over 3.06 million job losses in India across the aviation and related sectors such as tourism and hospitality.
“It will take a few years for the industry to get back to 2019 levels of activity,” added Clifford.
According to Iata, the global airline industry is expected to report losses of $84.3 billion during 2020 due to COVID-19.
The Indian government has suspended domestic aviation for a period of 2 months from March 25 to May 25. Although domestic flights were resumed, if only to a limited extent, international flights remained suspended at least until July 31.
Indian airlines have cut jobs and salaries, and renegotiated contracts with providers to help them survive the crisis.
Without market leader IndiGo, Indian airlines will need to spend at least $3.5 billion to survive the crisis, aviation consultancy firm CAPA India said last month.
Domestic traffic is expected to decrease to approximately 55 million this fiscal year, while international traffic is expected to decrease to approximately 20 to 27 million in the current fiscal year due to subdued demand for pandemic travel, Capa India added.
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