Airlines see sharply lower losses in 2022, recovery in sight
Reuters
Published Oct 04, 2021 08:54AM ET
Updated Oct 04, 2021 09:55PM ET
By Rajesh Kumar Singh
BOSTON (Reuters) -Global airlines on Monday projected a sharp reduction in industry losses next year as a multi-speed recovery from the coronavirus crisis gets under way, but revised up the financial toll inflicted by the pandemic in 2020 and 2021.
The International Air Transport Association, the industry's main trade body, predicted that net losses at airlines would narrow to $11.6 billion in 2022 from $51.8 billion this year.
The losses for 2021 were revised up from $47.7 billion estimated in April. IATA also revised up losses for 2020 to $137.7 billion from $126.4 billion estimated earlier.
While airlines across all regions are expected to perform better, those in North America are forecast to return to profit next year.
"We are past the deepest point of the crisis," IATA Director General Willie Walsh told the group's annual meeting. "While serious issues remain, the path to recovery is coming into view."
Yet, IATA urged governments to keep wage support measures and slot wavers in place until international traffic recovers.
It expects international travel demand to double next year and reach 44% of the 2019 levels. However, the vaccination rate as well as the lifting of government-imposed border restrictions will determine the pace of recovery.
"People ... are being held back from international travel by restrictions, uncertainty and complexity," said Walsh.
As governments are viewing inoculations as a way out of the health crisis, Walsh said vaccines need to be made available to anybody who wants them.
Domestic travel demand is estimated to reach 93% of the pre-pandemic level in 2022 - an improvement of 20 percentage points from this year.
Total passenger numbers are expected to increase to 3.4 billion next year from 2.3 billion in 2021, IATA estimates, but will be below 4.5 billion in 2019.
Passenger revenue in 2022 is expected to jump about 67% year-on-year to $378 billion. Air cargo is forecast to remain a bright spot, with demand seen rising 13.2% above the 2019 levels, IATA said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.