The International Air Transport Association (IATA) has updated its airline industry outlook, indicating that deep losses are expected to continue until 2021, even though performance over the forecast period is expected to improve.
IATA estimated a net loss this year of US$118.5 billion in June, deepening from the US$84.3 billion predicted (US$1=RM4.08) followed by a net loss of US$38.7 billion next year for the global airline industry.
The association said, in a statement, that the recession was catastrophic and implausible as airlines lowered costs by 45.8%, while sales were down 60.9%.
“We need to get borders safely re-opened without quarantine so that people will fly again,” its director-general and chief executive officer Alexandre de Juniac said.
While performance in the sector will improve by 2021 versus 2020, he mentioned that the way towards rehabilitation is expected to be complicated and tough.
He said it is no longer expected that passenger volumes will rebound to levels in 2019 before 2024, with domestic markets recovering more rapidly than global services.
He said that many major issues needed urgently to be resolved, including debt and financial support, closed borders, quarantine, and confidence.
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