IATA downgrades forecast of global airlines’ losses

The International Air Transport Association (IATA) has again downgraded the forecast of the consolidated net loss of global airlines in 2020-2021, according to the message of the organization, Report informs referring to Interfax.

IATA estimates last year’s loss to the industry at $126.4 billion, while in November it was forecasted at $118.5 billion, and before that, in June, it was $84.3 billion. According to the results of this year, the loss will amount to $47.7 billion, in November it was expected at $38.7 billion, in June – at $15.8 billion.

The passenger traffic of airlines this year may amount to about 2.4 billion people, which is more than 30 percent higher than last year’s figure, but 47 percent lower than in 2019.

The industry’s revenues are expected to reach $458 billion (+23 percent by 2020, -45 percent by 2019), in particular, from passenger traffic - $231 billion (+ 22 percent / - 62 percent), from freight traffic - $152 billion (+ 19 percent / + 50 percent), which will be the all-time high for this segment.

After the COVID crisis, the entire industry will be financially weakened, containing and cutting costs will be key to its recovery, IATA believes. Also, the association, as before, calls on world governments to provide support to airlines.

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