FILE PHOTO: A passenger plane passes in front of the Moon on its final landing at Heathrow Airport in London, England on September 12, 2019. Reuters / Toby Melville
4 October 2021
Rajesh Kumar Singh
BOSTON (Reuters) – Global airlines on Monday predicted a sharp decline in industry losses next year as a multi-speed recovery from the coronavirus crisis looms, but the 2020 and 2021 pandemics wrought financial sacrifices.
The International Air Transport Association, a leading trade association in the industry, has predicted that the airline’s net loss will drop from $51.8 billion this year to $11.6 billion in 2022.
The 2021 loss was revised upwards from an estimated April’s of $47.7 billion. IATA also revised its 2020 loss to $137.7 billion from an earlier estimated $126.4 billion.
While airlines are expected to improve in all sectors, North American airlines are expected to return to profitability next year.
“We have passed the depth of the crisis,” IATA Secretary General Willie Walsh told the group’s annual meeting. “While serious problems remain, we are looking for a way out.”
Nevertheless, IATA urged the government to maintain wage support measures and slot fluctuations until international transport recovers.
Overseas travel demand is expected to double next year, reaching 44% of 2019 levels. However, vaccination rates and government-imposed border restrictions will determine the pace of recovery.
“People … are being prevented from traveling abroad because of restrictions, uncertainties and complexity,” Walsh said.
As the government sees vaccination as a way out of the health crisis, Walsh said the vaccine should be available to anyone in need.
Domestic travel demand is projected to reach 93 percent of pre-pandemic levels in 2022, an improvement of 20 percentage points from this year.
Total passenger numbers are projected to increase from 2.3 billion in 2021 to 3.4 billion next year, but are projected to drop below 4.5 billion in 2019.
Passenger revenue is expected to grow by about 67% year-on-year to $378 billion in 2022. According to IATA, air cargo continues to be a bright spot, with demand up 13.2% from 2019 levels.
(Reporting by Rajesh Kumar Singh, Edited by Tim Heffer, Chizu Nomiyama, Nick Ziminsky)
Source Link Airlines expects to recover in 2022 with significant reduction in losses