Air: IATA assesses 2020-2021 losses as the largest in its history

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The financial impact of the Covid-19 promises to be severe for airlines. The international air transport association, IATA, which represents 190 airlines, announces colossal losses for the sector. By the end of the year, air passenger traffic should have dropped by 36%. According to Alexandre de Juniac, the director of IATA, the air losses in 2020 and 2021 will be the largest in its history.

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Airlines could suffer more than $ 84 billion in net losses this year and more than $ 15 billion next year as a result of the coronavirus pandemic. In comparison, they lost $ 31 billion during the 2008/2009 financial crisis.

In addition to these losses, the airlines will have to face an explosion in their debt. To save them from bankruptcy, the States fled to their aid with aid plans financed by public money. As for example Air France which received 7 billion euros from the State, the German company Lufthansa with 9 billion public aid or even Cathay Pacific which has just received the equivalent of 4 billion and a half euros from the government Hong Kongers.

In total, of the 123 billion dollars in state aid, 67 billion will have to be repaid and according to IATA, the deficit of the airlines could reach 550 billion dollars by 2021 against 120 billion currently.

To avoid collapsing under the weight of the debt some companies will make adjustments like Emirates, one of the largest airlines has just announced its intention to cut jobs without specifying the exact figure.

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• Aeronautics
• Coronavirus

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