The International Air Transport Association (IATA) has predicted that airlines will lose 39 billion dollars in 2021, more than double their previous forecast in June. This is in addition to a deficit of $118.5 billion in the current 12 months, a 40% increase from previous expectations after a new wave of closures wiped out the return of flights.
The total losses will be five times the losses accrued during the 2008-2009 recession, according to IATA, which expects the industry to turn profitable again in the fourth quarter of next year, earlier than it had suggested before the latest news of Corona vaccine tests. The forecast comes as airlines cling to hopes that recent moves toward passenger testing, along with rolling out the first vaccines for the "Covid-19" virus next year, will prompt governments to ease or remove travel restrictions.
Passenger numbers are likely to decline 61% in 2020 to levels 17 years ago, according to IATA forecasts, while passenger revenues will drop to $191 billion from $612 billion in 2019.
On the other hand, the largest commercial group for the aviation industry expected that airlines' losses would swell during the next year due to the outbreak of the Coronavirus, in light of expectations of delayed vaccination programs, which will take time to revive travel demand.
Source (Al-Arabiya.net website,Edited)
