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The projected revenue loss for the global airline industry is likely to be around $250 billion in 2020, up from the earlier estimate of $113 billion, the International Air Transport Association (IATA) announced on Tuesday.
The sharp increase in the projection of losses comes as more and more countries close their borders to global airlines.
“The latest projections are about 44 per cent higher compared to the 2019 levels,” said Brian Pearce, Chief Economist, IATA, in a global media teleconference media.
India, UAE and a host of other countries have closed their borders for international airlines. India will also stop domestic flights from midnight on Tuesday. Pearce described the current crisis as the gravest that the global civil aviation has faced.
IATA officials said recovery was unlikely to come quickly for the global aviation industry as the world has never seen a pandemic coincide with a global recession.
Addressing the media, Alexandre de Juniac, Chief Executive Officer and Director General, IATA, appealed to governments to help bail out airlines. “We need full-speed massive rescue packages now,” said the DG. Pearce called for support not only from governments, but also from suppliers who could provide a lifeline to the air transport industry.
Pearce felt that the drop in global aviation fuel prices to around $20 a barrel from the earlier high of $60 was “relatively small” compared with the revenue shock that the global airline industry is facing.
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