The International Air Transport Association (IATA) warned of a deterioration in the expectations of airlines compared to its estimates issued in December, and expected the liquidity drain in the sector to continue until the fourth quarter of this year in light of the tightening of travel restrictions.
The Association raised its forecast for the total liquidity consumption of airlines for 2021 to between 75 and 95 billion dollars, up from 48 billion in the December forecast.
While many countries began distributing vaccines to tackle the emerging coronavirus, the emergence of faster-spreading strains of the virus in countries such as Britain, Brazil and South Africa have forced many governments to ban unnecessary travel.
Next summer will be crucial for many airlines and holiday operators who are struggling to survive after nearly a year with little to no revenue due to the pandemic's restrictions. Many of them will need additional funds after their cash reserves are depleted.
British Heathrow Airport, for example, lost two billion pounds in 2020, and according to IATA, digital medical checks have become essential to the recovery of international travel. Revealing that it intends to launch a special travel permit for Covid-19 by the end of March, to activate a digital system for the results of examinations and vaccination certificates, which will help facilitate travel.
Source (Asharq Al-Awsat Newspaper, Edited)
