Airlines sectors are witnessing the worst year in its history due to the wake of the coronavirus pandemic which has broken the financial backbone of several economies. The Airline sectors are set to lose $84 billion as the ongoing coronavirus pandemic reduces revenue by half to mark.
On Tuesday, the report was forecasted by the International Air Transport Association (IATA). Most of the airliners all over the world are now stopped, said IATA and also predicted revenue may fall to $419 billion from $838 billion last year.
“Every day of this year will add $230 million to industry losses,” IATA Director General Alexandre de Juniac said.
The average loss stands presently at $38 per passenger and IATA has warned the losses may hit $100 billion in the next year as traffic struggles to recover and airlines slash fares to win business.
According to Mr Junic, there will be even more intense competition and that the “Airlines will still be financially fragile in 2021.”
“That will translate into strong incentives for travellers to take to the skies again,” he added. Presently, the airlines are counting the cost of weeks of lost business. IATA forecast a rise in 2021 revenue to $598 billion.
The numbers of passengers decreased to 2.25 billion this year before rising to 3.38 billion in 2021, still more than 25% below 2019 levels. This year passenger revenue fell to $41 billion while proxy fares came down to 18% this year.