Airlines to lose $51.8b in 2021

  • A statement from the Director General of the IATA

Global aviation industry will continue to struggle as the gradual recovery is unlikely to reduce their losses in near future as airlines are expected to incur $51.8 billion losses this year, latest data shows. The International Air Transport Association (Iata) said net industry losses are expected to reduce to $11.6 billion in 2022 after a $51.8 billion loss in 2021, reflecting an increase of 8.6 per cent from $47.7 billion loss estimated in April.

Total passenger numbers are expected to increase to 3.4 billion next year from 2.3 billion in 2021, Iata estimates, but will be below 4.5 billion in 2019.

Willie Walsh, Iata’s director-general, said the magnitude of the Covid-19 crisis for airlines is enormous. “Over the 2020-22 period total losses could top $200 billion. To survive airlines have dramatically cut costs and adapted their business to whatever opportunities were available. That will see the $137.7 billion loss of 2020 reduce to $52 billion this year. And that will further reduce to $12 billion in 2022,” Walsh said.

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