International Air Transport Association (IATA) has forecasted that global Airline passenger revenues are set to plunge by 55%, or USD 314 billion, in 2020 due to the coronavirus pandemic.
This is further downgrade for the aviation industry since the last forecast three weeks ago. Last month, the decrease in the revenue forecast for the aviation industry predicted to be 44 per cent, or USD252 billion. “The industry’s outlook grows darker by the day,” says IATA.
It is unlikely that the industry will see a V-shaped recovery unlikely. Conservatively, it will be a U-shaped recovery with domestic travel coming back faster than the international market.
Unless major relief packages are not announced by the respective Governments, many airlines will not survive to lead the economic recovery.
IATA is calling for support in terms of financial relief in the forms of loans, loan guarantees, tax relief etc. to mitigate this crisis.
As of early April, the number of flights worldwide was down by 80 per cent compared to the same period in 2019, said IATA, which brings together 290 airlines.
The crisis began for the aviation sector at the end of January when airlines suspended services to China, where the COVID-19 virus outbreak began.