The International Air Transport Association (IATA) has announced the publication of new analysis indicating that in the second quarter 2020, airlines may use up USD 61 billion of their reserves, while posting a quarterly net loss of USD 39 billion, the company said.
This analysis is based on the impact assessment IATA released under a scenario in which severe travel restrictions last for three months. In this scenario, full-year demand falls by 38% and full-year passenger revenues drop by USD 252 billion compared to 2019. The fall in demand would be the deepest in the second quarter, with a 71% drop.
Several governments are responding positively to the industry´s need for relief measures. Among countries providing specific financial or regulatory aid packages to the industry are Colombia, the United States, Singapore, Australia, China, New Zealand and Norway. Most recently, Canada, Colombia, and the Netherlands have relaxed regulations to allow airlines to offer passengers travel vouchers in place of refunds.
IATA (International Air Transport Association) represents some 290 airlines comprising 82% of global air traffic.