New Delhi: The International Air Transport Association (IATA) announced on Monday that the global airline industry’s losses could reach $201 billion during 2020-2022. “The magnitude of the COVID-19 crisis for airlines is enormous. Total losses in the 2020-2022 period could exceed $200 billion,” IATA Director-General Willie Walsh told the Airline Trade Association’s 77th Annual General Meeting.
IATA’s latest outlook for the airline industry showed “better results” and noted that the net industry loss could be reduced to $11.6 billion in 2022 from a loss of $51.8 billion in 2021. “Net 2020 loss estimates have been revised to $137.7 billion (from $126.4 billion). Adding these, the total industry deficit is expected to reach $201 billion in 2020-2022.”
“In order to survive, airlines have dramatically cut costs and adapted their business to whatever opportunities are available. We are well past the deepest point of the crisis. Although serious issues remain, the recovery process remains unresolved. The road is unfolding. Aviation is again demonstrating its resilience,” Mr. Walsh said.
IATA also said that the total number of passengers could reach 2.3 billion in 2021 and 3.4 billion in 2022; That’s “significantly less than the 4.5 billion passengers in 2019.”
It further said that “the air cargo business is performing well, and domestic travel will be close to pre-crisis levels in 2022.”
“People have not lost their desire to travel as we see in a solid domestic market. But they are being held back from international travel by restrictions, uncertainty and complexity. More governments are looking to vaccinate as a way out of this crisis. looking as it is.” Director General said.
“Aviation is resilient and resourceful, but the scale of this crisis requires solutions that only governments can provide. Financial support was a lifeline for many airlines during the crisis,” Mr. Walsh said.
The Airline Trade Association’s AGM also approved a proposal for the global air transportation industry to achieve net-zero carbon emissions by 2050.