A top International Air Transport Association (IATA) on Tuesday said that the Global Aviation Industry will lose 118.5 Billion dollars this coronavirus pandemic-stricken year and will be 38.7 billion dollars next to the year 2021, which are, however, extensive than the losses predicted in June as the second half of this year has been very unsatisfactory.
President and CEO of international routes said the vaccine will not have a large-scale positive impact on the economy and air traffic until the mid of 2021.
The International Air Transport Association (IATA) has increased the 84.3 billion loss forecast for 2020 in June by 40 percent, with the coronavirus showing a resurgence in successive waves due to which travel restrictions are continuing worldwide. However, this means that the aviation industry will lose 66 dollars for every passenger flown this year and the number of passengers will surge again in 2021 to about 2.8 billion.
Additionally, freight transportation is not badly hot as passenger traffic, and in 2019 cargo accounted for 12 percent revenues and that is, however, projected to grow to 36 percent in 2020. Moreover, it is performing better than the passenger business and it could make up for the decline in passenger revenue.
International Air Transport Association DG and CEO Alexandre de Juniac said ‘History books will record 2020 as the Aviation Industry’s worst financial year, as well as airlines, have also reduced their expenses by $1 billion per day on average from 2020 and will continue to suffer unprecedented losses.
As per IATA, Passenger revenues are projected to decline to 191 billion dollars, less than one-third of the $612 billion gained largely in 2019 predominantly driven by a 66 percent fall in the passenger demand.