The latest analysis of the impact of the Covid-19 pandemic on the revenues of airlines worldwide, undertaken by their global representative body, the International Air Transport Association (IATA), has indicated that it will be much worse than previously believed. IATA has now estimated that this impact will be more than twice as bad as indicated in its previous forecast.
On March 5, IATA issued a report which stated that the world’s airlines would likely suffer a revenue loss of up to $113-million due to the pandemic. The latest forecast, issued on March 24, has indicated that airline revenue losses could reach $252-billion. This figure would be 44% lower than the revenues accrued by the airline industry last year.
“The airline industry faces its gravest crisis,” highlighted IATA Director General and CEO Alexandre de Juniac. “Within a matter of a few weeks, our previous worst case scenario is looking better than our latest estimates.” The new estimates assume that the current severe air travel restrictions remain in effect for up to three months, with a subsequent gradual economic recovery thereafter.