IATA predicts delay to Gulf aviation rebound as airlines face $7.1bn losses

IATA predicts delay to Gulf aviation rebound as airlines face $7.1bn losses

Middle Eastern airlines are expected to see their losses rise to $7.1 billion this year as the coronavirus pandemic continues to decimate the aviation industry.

According to a new report by the International Air Transport Association, some airlines in the region faced the pandemic while they transitioning through a restructuring process which included a planned slowdown in capacity growth.

"Dependence of airlines in this region on connecting international flights and lack of large domestic markets will delay the recovery in the region," IATA said, adding that losses in 2021 are set to narrow to $3.3 billion.

However, airlines in this region have grown their cargo business and this has been some offset, the aviation body noted.

The IATA figures also showed that air passenger demand in the region has slumped by 73 percent in 2020 compared to last year while capacity has also fallen by 64.5 percent

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IATA previously said full-year 2020 passenger numbers in the Middle East are forecast to reach only 30 percent of 2019 levels, down significantly from the 45 percent that was projected in July.

In absolute numbers, the Middle East is expected to see 60 million travellers this year compared to the 203 million in 2019.

The aviation authority said that a