On the 24th local time, the International Air Transport Association revised the performance of the global air transport industry in 2020 and 2021. The International Aviation Association predicts that the serious losses in the industry will continue until 2021.
According to the latest data of the Aviation Association, the net loss in 2020 is expected to be $11.85 billion, which is higher than the June forecast, and the net loss in 2021 is expected to be $38.7 billion.
The International Aviation Association said that the COVID-19 crisis has challenged the survival of the aviation industry in 2020. In the face of $500 billion in revenue loss (from $838 billion to $328 billion in 2019), airlines cut costs by $365 billion.
“It’s no surprise that 2020 will be the worst year in the industry’s fiscal year history,” said Alexander de Juniak, co-chairman and CEO of International Aviation. Airlines cut spending an average of $1 billion a day in 2020, but still suffer unprecedented losses. If it were not for the government’s $143 billion financial rescue, more airlines would have gone bankrupt.
According to the data, passenger traffic is expected to plummet to 1.8 billion in 2020, down 60.5% from 4.5 billion in 2019. It is roughly the same as the industry data in 2003. Freight performance is significantly better than passenger transport, but it is still lower than in 2019.
Alexander de Juniak, co-chairman and CEO of International Airlines, said: “This crisis has dealt a ruthless and devastating blow to the industry. The airline will lose $66 for every passenger it takes this year.”
In addition, Juniak pointed out that the challenges to the future recovery of the aviation industry are fully dependent on the financial support of the government, the restrictions imposed by countries on the COVID-19 pandemic, and the confidence of all parties.