The International Air Transport Association (IATA) has revealed in its latest analysis that the global airline industry is expected to stay cash negative throughout this year due to the impact of the coronavirus (Covid-19) pandemic.
Its previous analysis in November 2020 showed that the industry is expected to turn cash positive in Q4 2021.
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According to the latest estimation, airlines are not expected to be cash positive until next year.
Additionally, cash burn in 2021 is anticipated to increase to the $75bn-$95bn range from the earlier anticipated $48bn.
IATA director general and CEO Alexandre de Juniac said: “With governments having tightened border restrictions, 2021 is shaping up to be a much tougher year than previously expected. Our best-case scenario sees airlines burning through $75bn in cash this year. And it could be as bad as $95bn.
“More emergency relief from governments will be needed. A functioning airline industry can eventually energise the economic recovery from Covid-19. But that won’t happen if there are massive failures before the crisis ends. If governments are unable to open their borders, we will need them to open their wallets with financial relief to keep airlines viable.”
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By GlobalDataMeanwhile, the IATA held that vaccines and testing will be crucial in keeping the pandemic under control and reviving economies, including the travel sector.
The association also expects the IATA Travel App to play a role in protecting passenger health data against fraud and streamlining the travel process as airlines plan to recover from the pandemic.
The IATA recently established a partnership with the Government of the Republic of Panama and Copa Airlines to trial the IATA Travel Pass.
With this partnership, Panama became the first country to participate in a trial of the IATA Travel Pass.
The IATA also reportedly held talks with leading Indian airlines to sign them up for its digital health pass.
