COVID-19: Global Airline Industry Sees $201bn In Losses

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Airline losses from the coronavirus pandemic are set to surpass $200 billion as travel curbs weigh on corporate and long-haul demand well into 2022, Airline losses from the coronavirus pandemic are set to surpass $200 billion as travel curbs weigh on corporate and long-haul demand well into 2022, according to the industry’s main lobby.

To aid the recovery, Walsh called on governments to simplify complex travel restrictions and allow vaccinated travelers to move freely between countries.

Losses this year will total almost $52 billion, IATA predicts, worse than the $48 billion estimated in April, after flights remained limited through the normally lucrative northern summer.Among global regions, only carriers in North America are forecast to return to profit next year, with almost $10 billion in net income. European airlines will register about $9.2 billion in losses, according to IATA, while Mideast operators, highly dependent on intercontinental routes, will rack up a $4.

Domestic flights, benefiting from the removal of curbs, will be almost back to pre-pandemic passenger levels next year, IATA said. Walsh said carriers will continue to need wage-support measures from governments until international travel recovers at scale, as well as regulatory steps such as the suspension of use-them or lose-them rules for airport slots.

 

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