IATA: World aviation revenue is expected to plummet in 2021
The International Air Transport Association (IATA) forecasts global aviation revenue in 2021 to decrease by 46% compared to 2019, before the outbreak of the outbreak of acute respiratory infections COVID-19.
|Jorge Newbery Airport in Buenos Aires, Argentina, closed on 20/3/2020 due to the spread of COVID-19. (Photo: AFP / VNA)|
In its previous outlook forecast, IATA forecast 2021 sales to fall 29% from 2019 “based on expectations of a demand recovery starting from the fourth quarter of 2020”.
According to IATA, representing 290 airlines around the world, the previous forecast was difficult to come true due to the new wave of COVID-19 pandemic infection as well as the government’s restrictive measures to prevent spread of the pandemic.
IATA forecasts a 66% decrease in passenger traffic by air for the whole year of 2020. In a statement, IATA General Director Alexandre de Juniac said the fourth quarter of 2020 will be extremely difficult and there is little indication that the business situation in the first half of 2021 will be better.
Even with the drastic cost-cutting, Mr Alexandre de Juniac said airlines will still need more bailout from the government to avoid running out of cash. In addition, Mr. Alexandre de Juniac urged airports and air traffic control agencies to raise service prices to compensate for the shortfall due to still low demand for air travel.
Mr. Alexandre de Juniac also warned that the low fuel costs for airlines thanks to low oil prices for airlines this year, is expected to “disappear” by 2021. At the same time, he said. About 1.3 million jobs in the airline industry are at risk and potentially adversely affecting millions of other workers.