IATA warns that Covid-19 could cost airline industry more than $200bn
By Iain Gilbert
Date: Tuesday 19 Oct 2021
(Sharecast News) - The International Air Transport Association warned on Monday that over the 2020-2022 period, total losses for the airline industry could top $200.0bn.
While IATA director general Willie Walsh stated "the deepest point of the crisis" had passed, 2020's $137.7bn loss, $52.0bn worth of losses were still expected to be seen in 2021, with a further $12.0bn in losses anticipated in 2022.
However, while "serious issues remain", Walsh stated "the path to recovery is coming into view" and that aviation was "demonstrating its resilience yet again".
He also highlighted that the air cargo business was performing well, and expects domestic travel to hit near pre-crisis levels in 2022.
On the other hand, Walsh stated the challenge now was international markets, which remain "severely depressed" as a result of government-imposed travel restrictions.
"People have not lost their desire to travel as we see in solid domestic market resilience. But they are being held back from international travel by restrictions, uncertainty and complexity. More governments are seeing vaccinations as a way out of this crisis. We fully agree that vaccinated people should not have their freedom of movement limited in any way. In fact, the freedom to travel is a good incentive for more people to be vaccinated. Governments must work together and do everything in their power to ensure that vaccines are available to anybody who wants them," said Walsh.
The IATA head also said re-establishing global connectivity, the 11.3m pre-Covid job in the aviation industry, and the $3.5trn of GDP associated with travel and tourism should be "priorities" for governments.
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