World airlines yesterday rallied governments to reopen international borders, and give financial bailouts to save economies and airlines from collapse.
The airlines, under the aegis of the International Air Transport Association (IATA), said the measures would hasten the recovery and slow current losses that are plundering the airlines out of business.
IATA, Tuesday, released its financial outlook for the global air transport industry showing that airlines are expected to lose $84.3billion in 2020 for a net profit margin of -20.1 per cent. Revenues will fall by 50 per cent to $419billion from $838billion in 2019. In 2021, losses are expected to be cut to $15.8billion as revenues rise to $598billion.
IATA’s Director General and CEO, Alexandre de Juniac, said financially, 2020 would 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 $84.3 billion. It means that—based on an estimate of 2.2 billion passengers this year—airlines will lose $37.54 per passenger. That’s why government financial relief was and remains crucial as airlines burn through cash,” de Juniac said.