The International Air Transport Association pegged global airline net losses at about $118.5 billion this year as combined revenues are expected to sink by half a trillion dollars.
That represents an average $66 loss per passenger flown this year, as 10 consecutive years of profitability come to a shuddering halt.
Speaking at the first ever IATA virtual annual general meeting, chief economist Brian Pearce forecasts passenger traffic will be down 66%, amid the ‘biggest shock to hit aviation since World War II.’
Pearce said airlines have enough cash to survive for about eight months on average, but some could go under within weeks.
In 2021 the industry will do better, but it will be another year of net losses.
It will likely lose $38.7 billion, which is significantly more than it had predicted in June.
This is dependent on significant re-opening of borders by mid-2021.
"The history books will record 2020 as the industry’s worst financial year, bar none," outgoing IATA chief Alexandre de Juniac said.
The bleak outlook will still likely see more airline casualties before a global rollout of a Covid-19 vaccine.
"The positive impact it will have on the economy and air traffic will not happen massively before mid-2021," de Juniac told Reuters.
Written by Ray Montgomery, US Editor
