World's airlines industry counting $230m loss per day

World's airlines industry is counting $230 million loss every day of this year as most of the world’s airliners currently parked, International Air Transport Association (IATA) Director General Alexandre de Juniac said on Tuesday.

“Every day of this year will add $230 million to industry losses,” the IATA director general said adding that the average loss amounts to almost $38 per passenger flown.

According to IATA, revenue of this sector would likely fall to $419 billion from $838 billion last year to mark the worst year in the sector’s history, reports Reuters.

In 2021, IATA warned losses could hit $100 billion as traffic struggles to recover and airlines slash fares to win business.

“Airlines will still be financially fragile in 2021,” De Juniac said, predicting “even more intense” competition.

“That will translate into strong incentives for travellers to take to the skies again,” he added.

IATA forecast a rise in 2021 revenue to $598 billion.

Airlines are counting the cost of weeks of lost business, a debt pile swollen by bailouts and a diminished demand outlook.

Passenger numbers are seen falling to 2.25 billion this year before rising to 3.38 billion in 2021, still more than 25 per cent below 2019 levels.

Yields, a proxy for fares, are seen falling 18 per cent this year, contributing to a $241 billion decline in passenger revenue.

Cargo, a relatively small share of the overall business, brought some relief as mass plane groundings drove price increases expected to top 30 per cent, IATA said, helping revenue to a near-record $111 billion.

Even in markets where COVID-19 infection rates have fallen sharply, airlines still face a patchwork of travel restrictions and wary consumers.

A 14-day quarantine for arriving passengers introduced by Britain this week has prompted an angry response and legal threats from the travel industry amid reports that it may be loosened in favour of 'air corridors' to some destinations.