Airlines globally are expected to lose $84.3 billion in 2020, the International Air Transport Association (IATA) said on Tuesday.
As per IATA's financial outlook for the global air transport industry, airlines are expected to lose $84.3 billion in 2020 for a net profit margin of (-) 20.1 per cent.
The airline industry's revenue is expected to fall by 50 per cent to $419 billion from $838 billion in 2019.
In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion, the forecast showed.
"Financially, 2020 will go down as the worst year in the history of aviation. On average, every day of this year will add $230 million to industry losses. In total that's a loss of $84.3 billion," IATA Director General and CEO Alexandre de Juniac said, in a statement.
"It means that based on an estimate of 2.2 billion passengers this year airlines will lose $37.54 per passenger. That's why government financial relief was and remains crucial as airlines burn through cash."
According to him, provided there is not a second and more damaging wave of Covid-19, the worst of the collapse in traffic is likely over.
"A key to the recovery is universal implementation of the re-start measures agreed through the International Civil Aviation Organisation (ICAO) to keep passengers and crew safe. And, with the help of effective contact tracing, these measures should give governments the confidence to open borders without quarantine measures," he said.
"That's an important part of the economic recovery because about 10 per cent of the world's GDP is from tourism and much of that depends on air travel. Getting people safely flying again will be a powerful economic boost."
At present, IATA represents some 290 airlines comprising 82 per cent of global air traffic.
( With inputs from IANS )