Airlines face a loss of $ 47.7 billion in 2021: IATA Aviation Corps

Airlines face a loss of $ 47.7 billion in 2021: Aviation Corps

Airlines are forecast to lose $ 47.7 billion (39.7 billion euros) this year due to a pandemic.

Airlines are forecast to lose $ 47.7 billion (39.7 billion euros) this year, worse than previously forecast, a global industry group said on Wednesday as the sector struggles to recover from the coronavirus pandemic.

On a brighter note, the International Air Transport Association raised its forecast for global air passenger traffic, saying it would reach 43 percent of pre-pandemic levels.

The IATA had projected net after-tax losses of $ 38 billion in December.

“Financial performance will be poorer and more variable this year than we expected in our December forecast, due to difficulties in managing the slower virus and vaccination fluctuations in some regions,” the association said in a report.

Airlines lost more than $ 126 billion last year as the Covid-19 crisis prompted countries to lock cities, close borders and ban international flights.

North American airlines will pay better than previously thought, with losses of $ 5 billion instead of $ 11 billion, thanks to the recovery of the domestic market there, the IATA says.

But the outlook has worsened in Europe due to a slower vaccination campaign and less easing of international travel restrictions.

European airlines are now tipped to lose $ 22 billion, compared to $ 12 billion in the earlier forecast.

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