The International Air Transport Association (IATA) has released a revised outlook for airline industry performance, predicting deep losses into next year.
The trade body predicts a net loss of $118.5 billion for the sector this year, significantly deeper than the $84 billion forecast made in June.
Perhaps more worryingly, a net loss of $39 billion is expected in 2021, with significant revenue not expected to return until quarter four of next year.
Aggressive cost-cutting is thus expected to combine with increased demand during 2021 – due to the re-opening of borders with testing and/or the widespread availability of a vaccine.
“This crisis is devastating and unrelenting.
“Airlines have cut costs by 46 per cent, but revenues are down 61 per cent.
“The result is that airlines will lose $66 for every passenger carried this year for a total net loss of $118.5 billion.
“This loss will be reduced sharply by $80 billion in 2021.
“But the prospect of losing $39 billion next year is nothing to celebrate.
“We need to get borders safely re-opened without quarantine so that people will fly again.
“And with airlines expected to bleed cash at least until the fourth quarter of 2021 there is no