Airlines across the world expected to lose $84.3 bn in 2020 due to COVID-19: IATA

The global airlines body said that 2020 will go down as the worst year in the history of aviation financially.
Aircraft from multiple airlines parked at Delhi airport during lockdown
Aircraft from multiple airlines parked at Delhi airport during lockdown
Written by:

Global airlines body IATA said on Tuesday that airlines across the world are expected to lose $84.3 billion in 2020 due to the coronavirus pandemic, calling it the "worst year" in the history of aviation.

Even as the number of coronavirus cases continue to rise globally, various countries have restarted domestic and international air travel, albeit with much precautions and in a curtailed manner.

"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 84.3billion," said Alexandre de Juniac, IATA's Director General and CEO, in a statement.

The International Air Transport Association (IATA) said revenues will fall 50% to $419 billion in 2020 from $838 billion in 2019.

"In 2021, losses are expected to be cut to 15.8 billion as revenues rise to 598 billion," said the IATA, which has around 300 airlines as its members that handle around 82 per cent of the total global air traffic.

After a gap of two months, India resumed its scheduled domestic passenger flights on May 25. Scheduled international passenger flights continue to remain suspended in India.

De Juniac said as per the IATA's estimates, 2.2 billion passengers will travel through flights this year and the airlines will lose $37.54 per passenger.

"That's why government financial relief was and remains crucial as airlines burn through cash," he said.

Globally, over 4 lakh people have died of coronavirus and more than 70 lakh have tested positive for the virus ever since its emergence in China last December.

Around 2.66 lakh people have been infected and around 7,500 people died due to the infection in India till now.

De Juniac said, "Provided there is not a second and more damaging wave of COVID-19, the worst of the collapse in traffic is likely behind us. A key to the recovery is universal implementation of the re-start measures agreed through the International Civil Aviation Organization (ICAO) to keep passengers and crew safe."

Related Stories

No stories found.
The News Minute
www.thenewsminute.com