The Airlines Are Facing Further Huge Losses

The Airlines Are Facing Further Huge Losses

The airlines are facing further huge losses, as the corona crisis is still not over and will be extended deep into next year. The International Air Transport Association (IATA) said that the pandemic would cause the sector to lose $ 157 billion (€ 132.32 billion) this year and next. This is significantly more than previously estimated. "This crisis is devastating," said IATA Director General Alexandre de Juniac. According to him, the COVID-19 pandemic has made 2020 the worst fiscal year in aviation. IATA currently expects net losses of $ 118.5 billion this year, while it expected losses of $ 84.3 billion in June. Reports of potentially safe and effective vaccines have raised some hopes that air travel could recover next year. However, vaccinating millions of people around the world will take some time. IATA predicts the industry's losses in 2021 will reach $ 38.7 billion. According to the association, airlines will not start generating cash again until the last quarter of next year, thanks to aggressive cost reductions and a recovery in demand.