The International Air Transport Association (IATA) raised the cash loss forecast for global airlines during 2021 to $ 95 billion, according to a pessimistic scenario, compared to $ 48 billion, according to previous estimates.
The Etihad said in a report yesterday, Wednesday, that it raised expectations of cash loss for companies based on several factors, most notably the weak start of the aviation sector in 2021.
The report stated that the first half of 2021 will be worse than expected earlier, because governments have tightened travel restrictions in response to new Covid-19 variants.
The report stated that forward bookings for the summer (July-August) are currently 78% below the levels in February 2019.
As a result of the resumption of meager traffic, airlines will continue to use their money, so that their expenses exceed their profits.
According to the report, according to an optimistic scenario, travel restrictions are expected to be gradually lifted once the vulnerable populations in advanced economies are vaccinated, but only in time, to facilitate tepid demand during the peak summer travel season in the northern hemisphere.
The report indicated that in this case, demand in 2021 will be 38% compared to 2019 levels, and airline companies' cash losses will amount to about $ 75 billion over the year.
Special travel permit
The Corona crisis posed a challenge to the aviation industry in the face of a decrease in revenues by nearly half a trillion dollars, compared to 838 billion dollars in 2019, and thus it decreased to 328 billion dollars in 2020.
Airlines losses are estimated at 118.5 billion dollars during 2020, amid expectations that the travel sector will continue to be affected until 2024, according to previous estimates by IATA.
IATA said that it intends to launch a travel permit for Covid-19 at the end of next March, to activate a digital system for examination results and vaccination certificates, which will help facilitate travel.
IATA chief economist Brian Pearce said that even if airlines were able to reduce their costs and benefit from an improvement in domestic flights, "the sector is not expected to make a profit before 2022."
Next summer will be crucial for many airlines and holiday operators, who are struggling to survive after nearly a year without any significant revenue due to pandemic restrictions, and many of them will need additional money after depleting their cash reserves.
Britain's Heathrow airport said on Wednesday that it had lost 2 billion pounds in 2020, and that digital medical checks had become essential to the recovery of international travel.
For its part, the Australian airline QANTAS said today, Thursday, that the Corona virus pandemic has reduced its profits for 6 months, recording a loss of 1.08 billion Australian dollars (0.8 billion US dollars).