Airlines industry losses to top $84 Billion in 2020
Travel Biz News —
Airlines are expected to lose $84.3 billion in 2020 , according to International Air Transport Association (IATA) ‘s financial outlook for the global air transport industry released this week.
Revenues will fall 50 per cent to $419 billion from $838 billion in 2019. In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion.
Passenger numbers will roughly halve to 2.25 billion, approximately equal to 2006 levels. Passenger revenues are expected to fall to $241 billion (down from $612 billion in 2019).
According to IATA , all regions will post losses in 2020. The crisis has taken on a similar dimension in all parts of the world with capacity cuts lagging about 10-15 percentage points or more behind the over-50% fall in demand.
Total passenger numbers are expected to rebound to 3.38 billion (roughly 2014 levels when there were 3.33 billion travelers), which is well below the 4.54 billion travelers in 2019.
Overall revenues are expected to be $598 billion which would be a 42% improvement in 2020, but still 29% below 2019’s $838 billion.
“Financially, 2020 will go down as the worst year in the history of aviation. On average, every day of this year will add $230 million to industry losses. In total that’s a loss of $84.3 billion. It means that—based on an estimate of 2.2 billion passengers this year—airlines will lose $37.54 per passenger. That’s why government financial relief was and remains crucial as airlines burn through cash,” said Alexandre de Juniac, IATA’s Director General and CEO.
“People will want to fly again, provided they have confidence in their personal financial situation and the measures taken to keep travelers safe,” said de Juniac.
June 2020 Image : Flightglobal
