Virus crisis to cut airline 2020 revenues by 60% - IATA

accreditation
0:00
play article
Subscribers can listen to this article
  • The industry is staring down the barrel of net losses of $118.5 billion.
  • The situation, however, is expected to improve next year.
  • Companies will have to continue to draw on their reserves until at least the fourth quarter of 2021, said IATA director general Alexandre de Juniac.


Airline revenues this year will plunge by 60% as a result of the coronavirus pandemic which threatens the survival of the industry, the International Air Transport Association (IATA) said Tuesday.

"The Covid-19 crisis threatens the survival of the air transport industry," with 2020 likely to go down in history as its "worst" year ever, IATA said.

It added that while airlines have been slashing costs by $1 billion a day, grounding fleets and cutting jobs, they are still racking up huge and "unprecedented" losses.

READ | International travel during a pandemic: How safe are you really?

Compared with 2019, this year's revenues are now expected at around $328 billion, IATA, which groups 290 airlines, said at its annual congress in Paris.

The industry will likely chalk up net losses of $118.5 billion, much worse than its June forecast for a loss of $84.3 billion, IATA added.

Next year the situation will improve but will still see airlines hit with a combined loss of $38.7 billion, also worse than its previous estimate of $15.8 billion.

READ HERE | How to go on holiday safely in the time of Covid-19: A practical guide

"This crisis is devastating and implacable," IATA director general Alexandre de Juniac said in a statement.

"Borders must reopen without quarantine measures so that passengers can take the plane again," de Juniac said.

"The companies will have to continue to draw on their reserves until at least the fourth quarter of 2021," he added.

IATA has been pressing governments for months to introduce virus testing before departure to do away with the need for normally 14-day quarantine periods on arrival, saying the change would allow airlines to get back to business without compromising safety.


Did you know you can comment on this article? Subscribe to News24 and add your voice to the conversation.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Lockdown For
DAYS
HRS
MINS
Voting Booth
Facebook is facing a fresh crisis after a former employee turned whistle-blower leaked internal company research. Do you still use Facebook?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, the benefits outweigh the risk for me
33% - 1778 votes
No, I have deleted it
38% - 2068 votes
Yes, but I am considering deleting it
30% - 1620 votes
Vote
Rand - Dollar
14.60
+1.1%
Rand - Pound
20.07
+0.6%
Rand - Euro
16.94
+1.1%
Rand - Aus dollar
10.83
+1.1%
Rand - Yen
0.13
+1.6%
Gold
1,767.22
-1.6%
Silver
23.32
-0.9%
Palladium
2,076.50
-3.1%
Platinum
1,060.26
-0.1%
Brent Crude
84.00
+1.0%
Top 40
60,494
+0.2%
All Share
67,029
+0.3%
Resource 10
64,347
-0.1%
Industrial 25
84,819
+0.7%
Financial 15
13,961
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE