The International Air Transport Association (IATA) announced that airline companies could lose $157 billion this year and next year due to the second wave of the Covid-19 outbreak in 2020.
The International Air Transport Association (IATA) announced that airline companies could lose $157 billion this year and next year due to the second wave of the new type of coronavirus (Covid-19) outbreak in 2020.
IATA, headquartered in Montreal, Canada, has published its report on the economic performance and financial outlook of the global air transport industry.
In the report, which is predicted to decrease to 340 billion dollars with a decrease of 61.2 percent this year compared to 2019, it is predicted that these expenses will increase by 40.1 percent to 476 billion dollars in 2021.
In the report, it was stated that Covid-19 undermined the air connection and the economic benefit it created, and it was stated that airlines could lose $118.5 billion this year.
It was estimated that the said loss will decline to 38.7 billion dollars next year. Thus, it was stated that a total of 157 billion losses could occur this year and next year.
IATA had predicted the two-year loss of $100 billion in its June outlook report.
It is noted that the Union expects the number of airline passengers to decrease from 4.5 billion last year to 1.8 billion this year and to partially recover to 2.8 billion passengers next year.
GLOBAL CARGO REVENUES WILL INCREASE BY 15 PERCENT
In the report of IATA, it was stated that due to the pandemic, passenger revenues of airlines will decrease by 69 percent in 2020 compared to last year, to $191 billion.
IATA also predicts that companies’ cargo revenues will increase by 15 percent this year to $117.7 billion, as the airline companies have increased cargo prices due to the low number of passengers, although the global cargo amount will decrease by 11.6 percent to 54.2 million tons.
The report stated that IATA’s estimates for this year and next year are based on reopening the borders by the middle of next year with the help of the Covid-19 test and the application of the vaccine, and repeated calls for governments to replace travel-restrictive quarantine measures with widespread testing programs.