On wednesday, Global industry group IATA said, Airlines are forecast to lose $47.7 billion (39.7 billion euros) this year, worse than previously forecast, as the Air travel sector struggles to recover from the coronavirus pandemic.
Earlier forecast of IATA in the month of december was a net post tax losses of $38 billion, however it raised the forecast for global air passenger traffic, saying it would reach 43 percent of pre-pandemic levels.
"Financial performance will be worse and more varied this year than we expected in our December forecast, because of difficulties in controlling the virus variants and slower vaccination in some regions," the association said in a report.
Vaccination is helping - North American carriers will fare better than previously anticipated , with losses of $5 billion instead of $11 billion, thanks to the recovery of the domestic market there, the IATA said.
IATA has less confidence on Europe - the outlook has worsened in Europe due to a slower vaccination campaign and less easing of international travel restrictions.
European airlines will do the bulk of losses, and are now tipped to lose around $22 billion, compared to $12 billion expected in the earlier forecast.
“This crisis is longer and deeper than anyone could have expected. Losses will be reduced from 2020, but the pain of the crisis increases. There is optimism in domestic markets where aviation’s hallmark resilience is demonstrated by rebounds in market without internal travel restrictions,” said Willie Walsh, IATA's Director-General.
Pictures : IATA.
