Airlines Face Another Bleak Year As Outlook Worsens

Airlines face another bleak year with steeper losses than previously forecast, as some regions struggle to speed up Covid-19 vaccination campaigns and control virus variants, an industry group said Wednesday.

The industry is expected to register net post-tax losses of $47.7 billion (39.7 billion euros) in 2021, greater than the $38 billion forecast in December, according to the International Air Transport Association.

On a brighter note, IATA slightly raised its forecast for global air passenger traffic, saying it would reach 43 percent of pre-pandemic levels this year.

“Financial performance will be worse and more varied this year than we expected in our December forecast, because of difficulties in controlling the virus variants and slower vaccination in some regions,” the association said in a report.

IATA said it now expected “much more limited” flying during the key summer season, when people take to the air on holiday.

IATA said it now expected “much more limited” flying during the key summer season, when people take to the air on holiday.

Airlines lost more than $126 billion last year as the Covid-19 crisis prompted countries to lock down cities, close borders and ban international flights.

IATA expects more people to fly in 2021, with 2.4 billion passengers compared to 1.8 billion in 2020.

It still remains far from pre-pandemic air traffic: some 4.5 billion people travelled by plane in 2019.