The International Air Transport Association’s (IATA) recently released global air transport industry financial outlook maintains airlines are expected to lose $84.3 billion this year, with revenues falling 50 percent.
“Financially, 2020 will go down as the worst year in the history of aviation,” IATA Director General and CEO Alexandre de Juniac said. “On average, every day of this year will add $230 million to industry losses. In total, that’s a loss of $84.3 billion. 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.”
Officials indicated revenues will fall to $419 billion from $838 billion in 2019 while noting next year losses are expected to be cut to $15.8 billion as revenues rise to $598 billion.
“Provided there is not a second and more damaging wave of COVID-19, the worst of the collapse in traffic is likely behind us,” de Juniac said. “A key to the recovery is universal implementation of the re-start measures agreed through the International Civil Aviation Organization (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. 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.”