The International Air Transport Association (IATA) has released its updated analysis stating that airline passenger revenues will decrease by $314bn this year due to the Covid-19 pandemic.
This marks a decline of 55% compared to the previous year. Last month, IATA stated that airline passenger revenues will decrease by 44% or $252bn.
The organisation updated the figures due to different parameters that include severe domestic restrictions over the past three months, international travel restrictions spanning over three months and severe worldwide impact.
The passenger demand, both international and domestic, is expected to decrease by 48% compared with last year due to the economic developments such as travel restrictions imposed by governments, as well as the possibility of a recession.
IATA director general and CEO Alexandre de Juniac said: “The industry’s outlook grows darker by the day. The scale of the crisis makes a sharp V-shaped recovery unlikely. Realistically, it will be a U-shaped recovery with domestic travel coming back faster than the international market.
“We could see more than half of passenger revenues disappear. That would be a $314bn hit. Several governments have stepped up with new or expanded financial relief measures but the situation remains critical.
“Airlines could burn through $61bn of cash reserves in the second quarter alone. That puts at risk 25 million jobs dependent on aviation. And without urgent relief, many airlines will not survive to lead the economic recovery.”
IATA proposed direct financial support for passenger cargo carriers, loans and tax relief from the government amid the Covid-19 pandemic.
Earlier this month, IATA stated that the global passenger demand for February decreased by 14.1% compared to February last year.