IATA forecasts reports potential USD 84bn loss in 2020 due to Coronavirus pandemic

International Air Transport Association (IATA) has forecast airlines could lose USD 84bn in 2020 as the coronavirus pandemic, the association said.

Revenues have been reduced by half to mark the worst year in the sector´s history.

With most of the world´s airliners currently parked, IATA said revenue would likely fall to USD 419 billion from USD 838 billion last year. The average loss amounts to almost USD 38 per passenger flown.

In 2021, IATA warned losses could hit USD 100 billion as traffic struggles to recover and airlines slash fares to win business.

IATA forecast a rise in 2021 revenue to USD 598 billion. Airlines are counting the cost of weeks of lost business, a debt pile swollen by bailouts and a diminished demand outlook.