Airlines in the World will Lose 51.8 Billion Dollars this Year: IATA

The agency called for the end of the travel restrictions derived from Covid-19 that are inconsistent, since they are paralyzing the recovery of the sector.

Airlines in the world will record losses this year of around 51.8 billion dollars, while by 2022 the amount will reach 11.6 billion dollars due to the impact of the pandemic on their operations, according to estimates from the International Air Transport Association. (IATA).

IATA Director General Willie Walsh indicated that the magnitude of the Covid-19 crisis for airlines is enormous, since during the 2020-2022 period, total losses could exceed 200,000 million.

“To survive, airlines have drastically cut costs and adapted their business to the opportunities available. That will reduce the loss of 137.7 billion in 2020 to 52 billion this year, ”he said.

However, Walsh said that this amount will be reduced to 12,000 million in 2022, so they have far exceeded the deepest point of the crisis and while serious problems remain, the road to recovery is in sight.

And it is that IATA estimates that the total number of passengers will reach 2,300 million in 2021, which will increase to 3,400 million in 2022, which is similar to the levels of 2014 and significantly below the 4,500 million travelers in 2019.

“People have not lost the desire to travel as we see in the strong resilience of the domestic market. But restrictions, uncertainty and complexity prevent them from traveling internationally. More governments see vaccines as a way out of this crisis. We fully agree that the freedom of movement of vaccinated people should not be restricted in any way, ”said Walsh.

He also stated that the restoration of global connectivity, the 11.3 million jobs before Covid-19 in the aviation industry and the 3.5 trillion dollars of GDP associated with travel and tourism should be priorities for governments. .

“Financial support was a lifeline for many airlines during the crisis. Much of that, roughly $ 110 billion, is in the form of support that must be repaid. Combined with commercial borrowing, the industry is now highly leveraged. We don’t want handouts, but some airlines may need salary support measures to retain critical skills until governments allow large-scale international travel, “he added.

Also, the agency called for the end of inconsistent travel restrictions derived from Covid-19, since they are paralyzing the recovery of the sector, for which it urged governments to implement simplified regimes to manage risks.

“The travel restrictions gave the government time to respond in the early days of the pandemic. Almost two years later, that justification no longer exists. Covid-19 is present in all parts of the world. Travel restrictions are a complex and confusing web of rules with very little consistency between them. And there is little evidence to support the ongoing border restrictions and the economic chaos they create, ”said Willie Walsh, IATA Director General.

In a sense, he commented that in recent months, several key markets that had previously been closed have taken steps to open up to vaccinated travelers. Among the markets that were previously closed, Europe was one of the first to move, followed by Canada, the United Kingdom, the United States and Singapore.

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Airlines in the World will Lose 51.8 Billion Dollars this Year: IATA - /10

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Airlines in the world will lose 51.8 billion dollars this year: IATA The agency called for the end of the travel restrictions derived from Covid-19 that are inconsistent, since they are paralyzing the recovery of the sector.

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