The global airlines trade association, International Air Transport Association (IATA), has released its latest estimates on the impacts of the ongoing COVID-19 pandemic on the world’s airlines. He now predicts that 2020 revenue losses for passenger airlines could reach $ 371 billion.
Estimates of the trade group’s losses increased as the pandemic progressed. In early March, IATA initially forecast losses in passenger airline revenue of $ 113 billion due to the pandemic. This estimate rose to $ 252 billion at the end of March, and $ 314 billion as of mid-April as travel restrictions increased and COVID-19 epidemics spread to regions such as Africa and Latin America.
The latest forecast is based on an increased lack of passenger demand as international borders close and lockdowns mount to try to contain the outbreak. He said overall passenger levels for the year will be equivalent to levels not seen since 2006. The new revenue loss forecast also takes into consideration that revenue will decline more than demand as airlines offer. price concessions to keep customers coming back.
IATA stressed that a positive point is the demand for freight. There is a shortage of cargo capacity created by immobilized passenger jets, as they are used to move certain types of cargo. That pushes rates up 30% for the year, estimates the trade group. He estimates that freight revenues will reach near record highs in 2020, contributing more than double the industry’s revenues than in 2019. The demand for cargo aircraft has been confirmed by Boeing (NYSE: BA) in his Can order update, because it delivered cargo planes in May, and no airliners.
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