Airlines set to lose USD 120 billion as pandemic bludgeons aviation sector

Economy

Published: 2020-12-07 12:36

Last Updated: 2020-12-07 14:14


Airlines set to lose USD 120 billion as pandemic bludgeons aviation sector
Airlines set to lose USD 120 billion as pandemic bludgeons aviation sector

Monday marks the UN’s International Civil Aviation Day, which is commemorated annually to acknowledge the importance of civil aviation.

But the sector appears to have little enthusiasm for the appreciation after one of the worst years ever recorded for the industry. According to the International Aid Transport Association (IATA), the aviation sector is set to lose USD 118 billion in 2020 as the pandemic continues to decimate air connectivity.

In Jordan alone, the industry lost USD 700 million.

“On average, every day of this year will add $230 million to industry losses [globally],” said IATA's CEO Alexandre de Juniac.

Airlines are, however, cautiously optimistic about a better 2021. Pending a quick and successful vaccine rollout, the sector could see revenues up to nearly 600 billion.

Travelers will also likely be incentivized with lower travel costs as airlines discount ticket prices to stimulate a demand for the upcoming year, said the IATA.

As world trade makes its own rebound, the airline industry will also see increased business from air-cargo.