Global Airline Industry Losses May Top $200 Billion During 2020-2022: IATA

IATA said net industry losses may be reduced to $11.6 billion in 2022.
IATA said net industry losses may be reduced to $11.6 billion in 2022.

New Delhi: The International Air Transport Association (IATA) on Monday announced that the global airline industry losses may reach $201 billion during 2020-2022. "The magnitude of the Covid-19 crisis for airlines is enormous. Over the 2020-2022 period total losses could top $200 billion," Willie Walsh, IATA's Director General said at the airline trade association's 77th Annual General Meeting.

The IATA's latest outlook for airline industry showed "improved results" and mentioned that the net industry losses may be reduced to $11.6 billion in 2022 after a $51.8 billion loss in 2021. "Net 2020 loss estimates have been revised to $137.7 billion (from $126.4 billion). Adding these up, total industry losses in 2020-2022 are expected to reach $201 billion," it added.

"To survive airlines have dramatically cut costs and adapted their business to whatever opportunities were available. We are well past the deepest point of the crisis. While serious issues remain, the path to recovery is coming into view. Aviation is demonstrating its resilience yet again,” Mr Walsh stated.

IATA also said that the total passenger numbers could reach 2.3 billion in 2021 and 3.4 billion in 2022; which is "significantly below the 4.5 billion travelers of 2019."

It further said that "the air cargo business is performing well, and domestic travel will near pre-crisis levels in 2022."

"People have not lost their desire to travel as we see in solid domestic market resilience. But they are being held back from international travel by restrictions, uncertainty and complexity. More governments are seeing vaccinations as a way out of this crisis," the IATA's Director General said.

"Aviation is resilient and resourceful, but the scale of this crisis needs solutions that only governments can provide. Financial support was a lifeline for many airlines during the crisis," Mr Walsh added.

The airline trade association's AGM also approved a resolution for the global air transport industry to achieve net-zero carbon emissions by 2050.