IATA forecasts bigger decline in 2021 airlines revenues - TravelMole


IATA forecasts bigger decline in 2021 airlines revenues

Tuesday, 29 Oct, 2020 0

No amount of drastic cost-cutting will save some airlines without further government aid, says the International Air Transport Association.

It  issued a far more pessimistic forecast for the industry and expects next year’s revenues to be less than half compared to 2019.

It had previously forecast s smaller decline of 29%, but that was based on a ‘recovery commencing in the fourth quarter of 2020.’

Its full year forecast for 2020 is a 66% decline in passenger traffic compared to 2019.

"Even if we maximize our cost cutting, we still won’t have a financially sustainable industry in 2021," IATA Director General Alexandre de Juniac said.

That will mean many more job cuts.

"The fourth quarter of 2020 will be extremely difficult and there is little indication the first half of 2021 will be significantly better, so long as borders remain closed and/or arrival quarantines remain in place."

"To survive, airlines will need to bring costs in line with revenues. Doing that is a difficult balancing act because airlines must also preserve the capability to be able to safely and efficiently ramp up operations when demand picks up," he added.

IATA called on aircraft lessors to lower aircraft rental costs, and airports and air navigation service providers to avoid cost increases to plug revenue gaps.

According to Brian Pearce, IATA’s chief economist, the ‘only bright spot’ is low fuel costs but says this could start to rise in 2021 before a recovery is in full swing.

Airports Council International Europe says there is a risk about 200 airports across Europe could shut down in the coming months if passenger traffic does not recover.

 

Written by Ray Montgomery, US Editor



Related News Stories:  



 

profileimage

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



Most Read

Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns

James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel

Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination

Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics

Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy

Bubba O’Keefe on Clarksdale’s Vibrant Music Scene

Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee

Craig Ray and the Expansion of the Blues Trail

Presenting Mississippi’s Cultural Trails with Katie Coats

Robert Terrell: A Journey Through BB King’s Influence

Rochelle Hicks: Celebrating Mississippi’s Musical Legacy

Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
TRAINING & COMPETITION

Our emails to you has bounced travelmole.com Or You can change your email from your profile Setting Section

Your region selection will be saved in your cookie for future visits. Please enable your cookie for TravelMole.com so this dialog box will not come up again.

Price Based Country test mode enabled for testing United States (US). You should do tests on private browsing mode. Browse in private with Firefox, Chrome and Safari