The turnover in the Airline industry will fall by more than 60% this year compared to 2019, reaching $328 billion, the worst year ever for the sector devastated by the Covid-19 crisis, the International Air Transport Association announced on Tuesday.
“The Covid-19 crisis has threatened the survival of the airline industry,” and “history books will remember 2020 as the worst financial year” for the sector which “cut costs by a billion dollars on average per day in 2020 and will continue to accumulate unprecedented losses,” the organisation which represents 290 airlines, said at its annual meeting.
IATA now forecasts net losses of $118.5 billion for the sector in 2020, up from an estimated $84.3 billion in June, and continued net losses next year at a region $40 billion for 2021, again a figure much higher than expected in June ($15.8 billion) before the second coronavirus wave arrived.
“This crisis is devastating and relentless,” said Alexandre de Juniac, Director of IATA. “The borders must be reopened without quarantine measures so that passengers can fly again. The airlines will have to continue to push to have some liquidity cash flows at least until the fourth quarter of 2021, so there is no time to lose,” de Juniac added.
IATA has for months strongly advocated for the generalization of screening tests carried out on the departure of passengers to avoid quarantine measures for the traveller on arrival.
In the coming weeks the industry is planning to launch its own “Travel Pass” app which will allow travellers to quickly prove that they have been vaccinated or have a negative Covid-19 test before getting on a plane.
The Brussels Times