Global air industry to lose $84bn in 2020, says IATA
The International Air Transport Association (IATA) released its financial outlook for the global air transport industry for the year on Tuesday, reporting that airlines were expected to lose $84.3bn (£65.5bn) in 2020, for a net profit margin of negative 20.1%.
It said revenues would fall 50% to $419bn, from $838bn in 2019.
In 2021, losses were expected to be cut to $15.8bn, with revenues rising to $598bn.
“Financially, 2020 will go down as the worst year in the history of aviation,” said the industry body’s director-general and chief executive officer, Alexandre de Juniac.
“On average, every day of this year will add $230m to industry losses.
“In total that’s a loss of $84.3bn.”
De Juniac said that meant, based on an estimate of 2.2 billion passengers this year, airlines would lose $37.54 per passenger.
“That’s why government financial relief was and remains crucial as airlines burn through cash.”
Provided there is not a second and more damaging wave of Covid-19, de Juniac said the worst of the collapse in traffic was likely now over.
“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% of the world’s GDP is from tourism and much of that depends on air travel.”