Mubasher: The International Air Transport Association (IATA) warned of $157 billion losses expected to be witnessed by airlines in 2020 and 2021 due to the coronavirus (COVID-19) pandemic and lockdown.
This forecast has lowered IATA's industry outlook in June of more than $100 billion losses this year and next year, according to a recent press release.
The association referred that airlines are predicted to lose $118.5 billion in 2020 and $38.7 billion in 2021.
However, airlines will witness improvements during the second half (H2) of 2021 after being negatively affected by COVID-19 in 2020 and the first half (H1) of 2021.
Meanwhile, the number of passengers would plunge by 60.5% to 1.8 billion in 2020 from 4.5 billion in 2019, with a fall of passenger revenues to $191 billion.
In 2021, the number of passengers is forecast to increase to 2.8 billion amid the reopening of borders, with overall revenues to rise to $459 billion.
"While the industry will see improved performance in 2021 compared to 2020, the road to recovery is expected to be long and difficult. Passenger volumes are not expected to return to 2019 levels until 2024 at the earliest, with domestic markets recovering faster than international services," IATA said in its statement.