October 4. Global aviation industry will continue to struggle as the gradual recovery is unlikely to reduce their losses in near future as airlines are expected to incur $51.8 billion losses this year, latest data shows.
The International Air Transport Association (Iata) said net industry losses are expected to reduce to $11.6 billion in 2022 after a $51.8 billion loss in 2021, reflecting an increase of 8.6 per cent from $47.7 billion loss estimated in April.
In its latest outlook for airline industry financial performance, the global aviation body said net 2020 loss estimates have been revised to $137.7 billion from $126.4 billion due to slow recovery and worldwide travel restrictions.
The Iata said overall travel demand is expected to reach 40 per cent of pre-crisis (2019) levels this year and further improve to 61 per cent in 2022. Seat capacity is expected to increase faster than demand growth, reaching 50 per cent of pre-crisis levels in 2021 and 67 per cent in 2022.
The industry body said overall revenues are expected to grow by 26.7 per cent this year compared to $472 billion in 2020. In 2022, industry revenues are expected to surge by 39.3 per cent to $658 billion, similar to 2011 levels.
Source: Khaleej Times