Global airlines' estimated coronavirus losses rise to $314 billion - IATA

PARIS/LONDON (Reuters) - Estimated global airline losses from the coronavirus pandemic have climbed to $314 billion, 25% more than previously forecast, owing to the severity of the economic downturn and a slower than previously expected reopening of international routes. The latest forecast from the International Air Transport Association (IATA) is up from the $252 billion figure given on March 24 and represents a 55% drop in 2020 passenger revenue compared with last year

Reuters April 15, 2020 00:06:37 IST
Global airlines' estimated coronavirus losses rise to $314 billion - IATA

coronavirus losses rise to $314 billion - IATA" src="https://images.firstpost.com/wp-content/uploads/reuters/04-2020/15/2020-04-14T134324Z_1_LYNXNPEG3D1BH_RTROPTP_2_HEALTH-CORONAVIRUS-FRANCE.jpg" alt="Global airlines estimated coronavirus losses rise to 314 billion IATA" width="300" height="225" />

PARIS/LONDON (Reuters) - Estimated global airline losses from the coronavirus pandemic have climbed to $314 billion, 25% more than previously forecast, owing to the severity of the economic downturn and a slower than previously expected reopening of international routes.

The latest forecast from the International Air Transport Association (IATA) is up from the $252 billion figure given on March 24 and represents a 55% drop in 2020 passenger revenue compared with last year.

Traffic measured in revenue passenger kilometres is forecast to be 48% down this year, compared with the previously forecast 38% decline, industry body IATA said at a weekly online news conference on Tuesday.

The pandemic has brought air travel to a standstill, with many airline fleets grounded and no visibility on when travel restrictions will be eased.

IATA has urged governments to provide airlines with liquidity urgently to help them to survive the crisis, warning that many will go bust within weeks unless they receive help.

The trade body, which represents airlines such as Lufthansa and British Airways owner IAG, said it expects domestic markets to be the first to reopen, as has happened in China, with international routes following gradually.

A phased return of international flights would still be problematic for airline finances because most carriers obtain the bulk of their revenue from international routes, IATA said.

(Reporting by Laurence Frost, Tim Hepher and Sarah Young; Editing by David Goodman)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes
India

Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes

The Pulitzer prize winner, who was in Kandahar covering operations against Taliban, was killed when he was riding along with the Afghan Special Forces

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province
India

Indian photojournalist Danish Siddiqui killed during assignment in Afghanistan's Kandahar province

Siddiqui had also covered the 2020 Delhi riots, COVID-19 pandemic, Nepal earthquake in 2015 and the protests in Hong Kong

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth
India

Danish Siddiqui's passing is a reminder of the high price one pays for showing the truth

Danish's photographs were not just documentation, but the work of someone who went down to eye-level, as they say in photographic parlance.