: The airline industry is expected to remain cash negative throughout 2021, with estimated cash burn ranging between US$75 billion to US$95 billion from a previously anticipated US$48 billion, according to the International Air Transport Association’s latest analysis.
It said factors that contributed to the latest findings included the weak start for 2021, as governments had tightened travel restrictions in response to new COVID-19 variants. Under the pessimistic scenario, it said airlines were seen burning through US$95 billion over the year. The driver of this scenario would be governments retaining significant travel restrictions through the peak northern summer travel season.
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