The Strategist

IATA: Airline industry losses to reach $47.7B in 2021

04/22/2021 - 03:59

In 2021, the global airline industry will suffer a loss of $47.7 billion, the International Air Transport Association (IATA) said in a report.

Stanislav Doronenko
Stanislav Doronenko
It is higher than the $38 billion loss forecast in IATA's November report. However, the organisation expected a stronger recovery of the industry starting from the second quarter of 2021.

Meanwhile, compared to losses for 2020, which IATA estimates at $126.4 billion, this year's losses will be an improvement, the organization said. The biggest losses are expected by European airlines - $22.2 billion, as well as carriers in the Asia-Pacific region - $10.5 billion.

Overall, in 2021, passenger traffic will recover to 43% of the volume of 2019, according to IATA. The total number of passengers carried in 2021 could reach 2.4 billion, up from 1.8 billion passengers in 2020, but well below the 2019 figure of 4.5 billion. 

Domestic air travel is expected to recover faster than international air travel. And by the second half of 2021, domestic air travel could reach 96% of the 2019 figure. Revenues for the global airline industry - both passenger and freight - could reach $458 billion this year, just 55% of 2019 revenues, but 23% more than in 2020.