Airlines globally to lose $118.5 bn in ’20

Airlines globally will lose a record more than $118.5 billion this calendar year because of the coronavirus pandemic and a muted travel appetite, International Air Transport Association (IATA) said on Tuesday. Losses are however expected to narrow to $38.7 billion next year, the industry body said.

IATA expects airline performance to improve in the second half of 2021, though the industry body expects passenger traffic to rebound to 2019 levels only by 2024.

“Aggressive cost-cutting is expected to combine with increased demand during 2021 because of the reopening of borders with testing and the widespread availability of a vaccine to see the industry turn cash-positive in the fourth quarter of 2021, which is earlier than previously forecast,” IATA said ahead of its 76th annual general meeting.