COVID-19: Global airline industry loses over $201 billion during pandemic

Airline losses from the coronavirus pandemic are expected to exceed $ 200 billion, as travel restrictions continue to weigh on. The International Air Transport Association stated at their Boston at its annual meeting that air carriers are poised to post a $ 11.6 billion collective deficit next year. The trading body also increased its loss estimate for this year, revising the 2020 deficit upwards.

As per the association, the industry combined $ 201 billion in net losses over the pandemic-affected period after nine years of industry revenue, based on IATA figures. While national and regional travel began to return, there was little recovery on the worldwide exciting business routes so important to many careers.

The US is ready to open its borders to transatlantic visitors next month, but other long-distance markets remain in the dilemma, particularly those linking Asia with Europe and North America.

"The size of the Covid-19 crisis for airlines is enormous," IATA Director General Willie Walsh told the largest gathering of industry executives in more than two years. "People have not lost their desire to travel, as we see in a solid domestic resilience. But, they are being held back by international travel restrictions, uncertainty and complexity.

Carriers stand for an additional challenge in responding to demands that move the industry faster to reduce its carbon footprint. The pressure that started before the pandemic has only increased in recent months. IATA on Monday accelerated its targets, setting a target of reaching zero emissions by 2050.

Passenger traffic — the number of people flying over the distance — is expected to reach 40% of pre-pandemic levels this year, up from 61% by 2022, when travelers are expected to be 3.4 billion. This is similar to the number of clients for 2014, but about a quarter down to the 2019 number.

Losses this year will be nearly $ 52 billion in total, IATA predicts, worse than the $ 48 billion estimated in April after flights were limited by the normally lucrative northern summer.