Airlines globally are expected to lose $84.3 billion in 2020, the International Air Transport Association (IATA) said on Tuesday, 9 June.
As per IATA's financial outlook for the global air transport industry, airlines are expected to lose $84.3 billion in 2020 for a net profit margin of (-) 20.1 percent.
The airline industry's revenue is expected to fall by 50 percent to $419 billion from $838 billion in 2019. In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion, the forecast showed.
“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, provided there is not a second and more damaging wave of Covid-19, the worst of the collapse in traffic is likely 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.
At present, IATA represents some 290 airlines comprising 82 percent of global air traffic.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)