IATA: Airlines need additional $80 billion to survive.
The world’s airlines need another $70 to $80 billion in government support to overcome the crisis caused by the coronavirus pandemic, Alexandre de Juniac, director general of the International Air Transport Association (IATA), told the BBC.
“The additional funds would “bridge the gap” between now and June, Juniac said.
See also: IATA will start implementing the Travel Pass from March.
It is in June that the first significant easing of travel restrictions is expected, as the impact of the vaccines will begin to be felt.
Government travel restrictions and a huge drop in passenger confidence meant that global demand for flights fell by about 60% last year, according to IATA figures.
See also: IATA asks to consider aviation workers as essential for Vaccination.
This means that about 1.8 billion passenger flights were made in 2020, instead of 4.5 billion in 2019. In an industry where profit margins were already slim, it means that airlines have already lost an estimated $118 billion, and the worst is yet to come.
More bankruptcies
Not all airlines have been able to cope with these losses.
Juniac said some 35-40 airlines have already disappeared. Many of them are smaller regional companies.
Other larger carriers, such as Thai Airways and South African Airways, have only survived thanks to large government bailouts and support programs.
Juniac adds that in 2021 “we are likely to see more bankruptcies,” so more government support is needed.
For airlines that still fly, coronavirus vaccines are considered essential to the recovery of international air travel.
IATA is developing a new application that it hopes will make it easier for passengers to fly by managing the testing of Covid’s tests and vaccines in a way that satisfies governments and airlines worldwide. It hopes to launch the application as soon as the end of March.
In the meantime, countries still have different requirements for testing and quarantine.
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Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.