Cargo, low fuel bright spots in worst year for aviation: IATA
THE year 2020 will go down as the worst financial year in the history of aviation because of the Covid-19 crisis, a fact that justifies an industry-wide government bailout, according to the International Air Transport Association
THE year 2020 will go down as the worst financial year in the history of aviation because of the Covid-19 crisis, a fact that justifies an industry-wide government bailout, according to the International Air Transport Association.
IATA's director general and CEO Alexandre de Juniac, former CEO of Air France, saw only one ray of hope. 'Strong cargo operations and comparatively low fuel prices will also give the industry a boost,' he said.
'But every day of this year will add US$230 million to industry losses. In total, that's a loss of $84.3 billion. That's why government financial relief is crucial,' he said.
'Provided there is not a second and more damaging wave of Covid-19, the worst of the collapse in traffic is likely behind us. A key to the recovery is universal implementation of the re-start measures agreed through the International Civil Aviation Organisation (ICAO) to keep passengers and crew safe,' he said.
'Airlines will still be financially fragile in 2021. Passenger revenues will be more than one-third smaller than in 2019. And airlines are expected to lose about $5 for every passenger carried. The cut in losses will come from re-opened borders leading to increased volumes of travellers.
'That will translate into strong incentives for travellers to take to the skies again. The challenge for 2022 will be turning reduced losses of 2021 into the profits that airlines will need to pay off their debts from this terrible crisis,' he said.