Industry losses to top $84 billion in 2020: IATA chief – Saudi Gazette

Industry losses to top $84 billion in 2020: IATA chief – Saudi Gazette

GENEVA - The International Air Transport Association (IATA) released its financial outlook for the global air transport industry showing that airlines are expected to lose $84.3 billion in 2020 for a net profit margin of -20.1%.. On average, every day of this year will add $230 million to industry losses.. With the help of effective contact tracing, these measures should give governments the confidence to open borders without quarantine measures.. The region's governments have implemented some of the most draconian measures in terms of border closures which could both delay and slow down the recovery.. International donors will be needed to supplement the limited means for the region's governments to provide relief packages.. Reduced Losses in 2021With open borders and rising demand in 2021, the industry is expected to cut its losses to $15.8 billion for a net profit margin of -2.6%.. Airlines will be in recovery mode but still well below pre-crisis levels (2019) on many performance measures:Total passenger numbers are expected to rebound to 3.38 billion (roughly 2014 levels when there were 3.33 billion travelers), which is well below the 4.54 billion travelers in 2019.. Unit costs are expected to fall as fixed costs are spread across more