The airline industry to lose $47.7 billion in 2021 says IATA
The airline industry is to suffer a net loss of $47.7 billion in 2021 says the International Air Transport Association (IATA). This is however a better improvement over to the net loss of $126.4 billion in 2020 for the industry.
“This crisis is longer and deeper than anyone could have expected. Losses will be reduced from 2020, but the pain of the crisis increases. There is optimism in domestic markets where aviation’s hallmark resilience is demonstrated by rebounds in markets without internal travel restrictions. The government-imposed travel restrictions, however, continue to dampen the strong underlying demand for international travel. Despite an estimated 2.4 billion people traveling by air in 2021, airlines will burn through a further $81 billion of cash,” - Willie Walsh, IATA’s Director-General.
Due to travel restrictions and strict quarantine
measures, global travel demand is less however passenger demand has improved significantly in countries where restrictions are less.
Overall passenger travel number is expected to reach 2.4 billion in 2021 which is well below the 2019 peak of 4.5 billion.
For the first two months of 2021, International passenger travel remained 86.7% down compared to pre-covid levels while domestic passenger travel is performing better.
IATA expects the domestic passenger market to reach 96% that of 2019 by the second half of 2021.
Cargo demand remains exceptionally well with cargo volume expected to reach 63.1 million tonnes by the end of 2021 which is near equivalent to 2019.