The International Air Transport Association (IATA) has updated its analysis of the revenue impact of the COVID-19 pandemic on the global air transport industry and projected that airlines would lose $252 billion.
IATA said owing to the severity of travel restrictions and the expected global recession, it has estimated that industry passenger revenues could plummet the said amount or 44 per cent below 2019’s figure.
The Director General and CEO of IATA, Mr. Alexander de Juniac said it would be a scenario in which severe travel restrictions would last for up to three months, followed by a gradual economic recovery later this year.
IATA explained that its previous analysis of up to a $113 billion revenue loss was made on March 5, 2020, before the countries around the world introduced sweeping travel restrictions that largely eliminated the international air travel market.
“The airline industry faces its gravest crisis. Within a matter of a few weeks, our previous worst case scenario is looking better than our latest estimates. But without immediate government relief measures, there will not be an industry left standing. Airlines need $200 billion in liquidity support simply to make it through. Some governments have already stepped forward, but many more need to follow suit,” De Juniac said.