IATA projects airlines will lose $84.3B in 2020

IATA projects airlines will lose $84.3B in 2020
  • Clock-gray 17:57
  • calendar-gray 09 June 2020

Airlines will lose $84.3 billion in 2020 as a result of the coronavirus pandemic, the International Air Transport Association (IATA) said in its projections released on Tuesday. The organization warned nobody in the industry will make a profit this year and that all regions will be affected, APA reports citing Teletrader.

However, IATA's Chief Economist Brian Pierce told the press that while it is expected that cargo will increase to levels last seen in 2019 next year, passenger volumes are forecast to drop 29% compared to last year. Nevertheless, passenger levels are expected to jump 55% year on year in 2021. Meanwhile, IATA warned that airlines will have an increase in debt of $120 billion at the end of 2020 compared to the previous year as total debt when the current calendar year ends is seen at $550 billion.

Losses in aviation next year are seen at $15.8 billion.

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