New Delhi/Geneva, Nov 24 : The global airline industry’s net losses might widen to $118.5 billion in 2020, the International Air Transport Association (IATA) said on Tuesday.
In its revised outlook for airline industry performance in 2020 and 2021, it said that deep losses will continue into 2021, even though performance is expected to improve over the period of the forecast.
A net loss of $118.5 billion is expected for 2020, deeper than the $84.3 billion forecast in June.
Nevertheless, a net loss of $38.7 billion is expected in 2021 more than the $15.8 billion as projected by the previous forecast.
“Performance factors in 2021 will show improvements on 2020; and the second half of 2021 is expected to see improvements after a difficult 2021 first half,” the association said in a statement.
“Aggressive cost-cutting is expected to combine with increased demand during 2021 (due to the re-opening of borders with testing and or the widespread availability of a vaccine) to see the industry turn cash-positive in the fourth quarter of 2021 which is earlier than previously forecast.”
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