Airlines need fresh $80bn in aid to survive —IATA
Airlines need up to another $80 billion to survive, the head of the industry’s trade association told a French daily on Friday, as many countries tighten restrictions to confront another surge of coronavirus infections.
We are extremely grateful to them for having injected $160 billion into the sector,” Alexandre de Juniac, director general of the International Air Transport Association (IATA), said on Friday at the Paris Air Forum, hosted by newspaper La Tribune.
“For the coming months, the industry is estimated to need $70-$80 billion in additional aid,” the head of the International Air Transport Association Alexandre de Juniac told La Tribune. Otherwise, they won’t survive.”
Meanwhile a renewed surge in COVID-19 maladies and travel curbs has further dimmed the financial outlook for a sector which IATA has predicted is set to lose $87 billion this year.
“It’s quite probable that we will be looking at bigger losses than the figures we announced,” De Juniac said, adding that the full-year deficit would likely approach $100 billion.
IATA has predicted a painfully slow recovery with a return to pre-crisis traffic levels only in 2024 and passenger numbers still down 30% next year.
That too could prove optimistic, De Juniac warned. “We estimate that air traffic will be at 33% of its 2019 level at the end of 2020 and then, we hope, 50-60% at the end of 2021.”