The International Air Transport Association (IATA) announced that airline operators are losing $418 million daily and has called on governments to provide additional aid.
IATA expects the airline industry to record losses of up to $77 billion in the second half of 2020, as coronavirus pandemic restrictions continue to impact global travel.
Since the onset of the pandemic, governments have provided airlines with $160 billion through cash injections, guaranteed loans, wage subsidies, and tax reliefs.
Normally, airline operators build cash reserves during the peak travel season in the middle of the year. However, this year companies have recorded losses, explained IATA Director General Alexandre de Juniac.
IATA warns that without additional government support, the aviation industry risks losing 4.8 million jobs. From a financial perspective, 2020 will be the worst year in aviation history, Alexandre de Juniac recently stated. In comparison, airlines worldwide lost $31 billion following the global financial crisis of 2008 and 2009. There is no point of comparison for the scale of this crisis, the IATA representative declared.
Frequently Asked Questions
What is the estimated daily loss for airlines?IATA estimates that airline operators are losing approximately $418 million every day due to travel restrictions.
How many jobs are at risk in the aviation industry?Without additional government aid, the aviation industry risks losing approximately 4.8 million jobs.
How does the current crisis compare to the 2008-2009 financial crisis?The current crisis is significantly more severe; in 2008-2009, losses totaled $31 billion, whereas H2 2020 alone is estimated at $77 billion.