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Travel Airlines can expect to bleed up to $157 billion in losses until people fly normally again, making 2020 the worst year in aviation history, industry body IATA says

17:15  26 november  2020
17:15  26 november  2020 Source:   businessinsider.com

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De Juniac said that Covid-19 made 2020 the worst financial year on record "bar none." The industry group expects net losses to total 8.5 billion "We need to get borders safely reopened without quarantine so that people will fly again ," said de Juniac. "With airlines expected to bleed cash at

Airlines are on course to lose a total $ 157 billion this year and next, their main global body warned on Tuesday, further downgrading its The International Air Transport Association ( IATA ), which in June had forecast 0 billion in losses for the two- year period, said it now projects a 8.5 billion deficit

a large air plane on a runway: Shutterstock/Philip Pilosian © Shutterstock/Philip Pilosian Shutterstock/Philip Pilosian
  • Airlines will rack up losses up to $157 billion until borders reopen safely and a vaccine rolls out, the International Air Transport Association predicted.
  • The loss will be five times the deficit racked up during the 2008 financial recession.
  • The slump in revenue during the pandemic shows airlines will lose $66 for every passenger carried this year, the association said.
  • "The history books will record 2020 as the industry's worst financial year, bar none," IATA's CEO said.
  • Visit Business Insider's homepage for more stories.

Airlines will keep racking up losses into next year, as the industry expects the distribution of vaccines to take a while before flying returns to normal.

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Airlines are on course to lose a total $ 157 billion this year and next, their main global body warned on Tuesday, further downgrading its The International Air Transport Association ( IATA ), which in June had forecast 0 billion in losses for the two- year period, said it now projects a 8.5 billion deficit

Airlines globally could end up with losses of a stupendous 8.5 billion this pandemic-stricken year . And with airlines expected to bleed cash at least until the fourth quarter of 2021 there is no time to lose.” “ History books will record 2020 as the industry ’s worst financial year , bar none.

The International Air Transport Association this week predicted a worse than expected record loss for airline carriers, saying the industry will lose a total of $157 billion in 2020 and 2021. This would be five times larger than the deficit built up during the 2008 financial crisis.

During the "devastating and unrelenting" crisis, the trade group said although airlines have cut costs by about 46%, revenues are down 60%.

A major consequence is that they will "lose $66 for every passenger carried this year," IATA said.


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The forecast is in spite of an expectation of further federal relief for the sector. Airlines have been especially hard-hit because their very business relies on proximity among people — one of the greatest risks of the year. Carriers began laying off tens of thousands of workers last month to cut costs and weather the slowdown in travel.

Airlines will lose $77 billion in the second half of 2020 and Boeing predicts a 20-year recovery process as COVID-19 continues to crush travel demand

  Airlines will lose $77 billion in the second half of 2020 and Boeing predicts a 20-year recovery process as COVID-19 continues to crush travel demand Airlines expect travel demand to recover from the pandemic by 2024, but Boeing expects planemakers' sales to suffer for decades.The world's airlines will burn through more $77 billion in cash during the second half of the year, the International Air Transport Association (IATA) warned this week, even as travel demand makes modest returns from historic lows reached in April.

New Delhi: Global airlines body IATA said on Tuesday that airlines across the world are expected to lose USD 84.3 billion in 2020 due to the coronavirus pandemic, calling it the " worst year " in the history of aviation . Even as the number of coronavirus cases continue to rise globally, various countries have

that is expected to hit the aviation industry harder than any other crisis since the new millennium This setback is an example of why a recovery in aviation may take longer than many had hoped. On March 23, the International Air Transport Association ( IATA ) increased its global estimate on lost

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"The history books will record 2020 as the industry's worst financial year, bar none," Alexandre de Juniac, IATA's director general and CEO said in a statement. "Airlines cut expenses by an average of a billion dollars a day over 2020 and will still rack-up unprecedented losses."

Airlines won't return to profitability until the fourth quarter of 2021, assuming that there will be a wide reopening of borders and vaccine availability, IATA predicted.

There could also be a billion more travelers next year, with the number of passengers expected to grow to 2.8 billion in 2021. However, passenger volumes may not return to pre-pandemic levels until 2024.

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