Airlines have money for 8.5 months - IATA

Created on 19.11.2020 13:56

The International Air Transport Association (IATA) expects a 46 percent reduction in industry revenue in 2021 compared to 2019. It should be noted, the revenue of global aviation in 2019 was $ 838 billion. Previous analysis of the organization predicted a 29 percent decline.

IATA declares that the deterioration of forecast is depending on the expected growth in demand and the recovery of air traffic, which were supposed to begin in the fourth quarter of 2020. But this moment had not arrived due to new outbreaks of coronavirus and restrictions imposed by governments. According to the association's forecasts, passenger traffic in 2020 would decline by 66 percent, while demand would decrease by 68 percent in December.

"The fourth quarter of 2020 will be extremely complicated and there is no evidence that the first half of 2021 will be significantly better. Without additional financial assistance from the authorities, the average airline has only 8.5 months of cash at current spending rates," Alexander de Juniac said, Director General of IATA.