Global airlines' estimated losses due to coronavirus rise to $314b: IATA
Estimated global airline losses from the coronavirus pandemic have climbed to $314 billion, 25% more than previously forecast, due to the severity of the financial downturn and a slower than previously expected reopening of international routes.
The most recent forecast from the International Air Transport Association (IATA) is up from the $252 billion figure given on March 24 and represents a 55% drop in 2020 passenger income compared with last year.
Traffic measured in income passenger kilometres is forecast to be 48% down this year, compared with the previously forecast 38% decline, industry body IATA said at a weekly online news conference on Tuesday.
"The recovery ought to be slower and the crisis deeper than we expected even a month ago," Director General Alexandre de Juniac told Reuters TV within an online interview.
The pandemic has brought flights to a virtual standstill, with many airline fleets grounded and no visibility on when travel restrictions will be eased.
IATA has urged governments to provide airlines with liquidity urgently to greatly help them to survive the crisis, warning that lots of will go bust within weeks unless they receive help.
The trade body, which represents airlines such as for example Lufthansa (LHAG.DE) and British Airways owner IAG (ICAG.L), said it expects domestic markets to be the first ever to reopen, as has happened in China, with international routes following gradually.
A phased return of international flights would be difficult for airline finances because most carriers have the bulk of their earnings from international routes, IATA said.
IATA urged nations to co-operate on the lifting of restrictions and said it could organise a series of regional meetings to weigh a "restart plan" for the industry.
"These measures which may have been implemented unilaterally by each state need to be lifted jointly otherwise it will not work," de Juniac said.
"You cannot say you authorise your citizens to go abroad without having on the other hand circumstances saying 'I am prepared to welcome them'."
IATA was getting into a three-stage plan to boost passenger confidence in flying, restore the confidence of governments and gain approvals from health authorities, he said.
IATA has started a survey of passengers in 11 countries to understand the depth of concerns about flights.
De Juniac told Reuters TV restoring demand would depend partly on measures such as controls and testing, and option of specialist equipment.
Once governments decide it really is appropriate to lift travel restrictions, flying will be safe "so long as these measures are properly designed and properly implemented," he added.
