Global airlines' estimated losses because of coronavirus rise to $314b: IATA

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Estimated global airline losses from the coronavirus pandemic have climbed to $314 billion, 25% a lot more than previously forecast, due to the severity of the economic downturn and a slower than previously expected reopening of international routes.

The most recent 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 earnings compared with this past year.

Traffic measured in earnings passenger kilometres is forecast to be 48% down this season, weighed against the previously forecast 38% decline, industry body IATA said at a weekly online news conference on Tuesday.

"The recovery ought to be slower and the crisis deeper than we expected even one month ago," Director General Alexandre de Juniac told Reuters TV within an online interview.

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

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

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

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

IATA urged nations to co-operate on the lifting of restrictions and said it would organise a series of regional meetings to weigh a "restart plan" for the industry.
Source: https://www.thedailystar.net

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