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    In 2019 there was a 4% increase

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20 November 2020 Airlines will need $ 70-80 billion in additional aid from governments to survive the Covid-19 crisis.

This is the estimate made by Alexandre de Juniac, director general of Iata, the international air transport association.



The sector "has already received $ 160 billion in aid from governments, but it should need between $ 70 billion and $ 80 billion in additional aid in the coming months," otherwise "the companies will not survive," he said in an interview. to La Tribune, which anticipates the issues under discussion at the organization's Annual General Assembly, which brings together 290 airlines around the world, which begins on 23 November.



About 40 companies on the verge of bankruptcy


According to de Juniac, "the harsher the crisis, the greater the risk of bankruptcy", indicating that "nearly 40 companies are in great difficulty or have already initiated safeguard or bankruptcy procedures".



Since the start of the health crisis, which forced airlines to keep planes on the ground for several weeks or months last spring, governments have granted aid in the form of loans, direct aid and job maintenance.

However, with the second wave of infections, air traffic is struggling to restart, expanding the losses of companies.



"It is true that the vaccine discoveries offer hope, but the return to mass travel is still an almost impossible goal to achieve." In the meantime - he explained - a new increase in Covid19 infections and restrictions measures have further clouded the prospects. for a sector ".



Losses of 100 billion


" It is likely that this year will approach the 100 billion rather than the 87 billion previously announced, "said de Juniac. As for a possible consolidation of the sector," it would be necessary that companies had the means to buy each other, but in reality they are in survival mode. "



Fewer companies, smaller


In the long run, however, he believes" likely "there will be" fewer players in the field, " due to bankruptcies "and" a little smaller, because they will have been forced to sell a large part of their fleet or close routes. "



IATA predicted a painfully slow recovery with a return

or at pre-crisis traffic levels only in 2024 and passenger numbers still down by 30% next year.

An estimate that could turn out to be optimistic, warned de Juniac.

"We estimate that air traffic will be at 33% of its 2019 level by the end of 2020 and then hopefully 50-60% by the end of 2021," he concluded.