Airlines are forecast to shed $47.7 billion (39.7 billion euros) this year, worse than previously forecast, a international market group mentioned Wednesday as the sector struggles to recover from the coronavirus pandemic.
On a brighter note, the International Air Transport Association slightly raised its forecast for international air passenger website traffic, saying it would attain 43 % of pre-pandemic levels.
The IATA had forecast net post tax losses of $38 billion in December.
“Financial performance will be worse and more varied this year than we expected in our December forecast, because of difficulties in controlling the virus variants and slower vaccination in some regions,” the association mentioned in a report.
Airlines lost more than $126 billion last year as the Covid-19 crisis prompted nations to lock down cities, close borders and ban international flights.
North American airlines will fare much better than previously believed, with losses of $5 billion as an alternative of $11 billion, thanks to the recovery of the domestic industry there, the IATA mentioned.
But the outlook has worsened in Europe due to a slower vaccination campaign and much less easing of international travel restrictions.
European airlines are now tipped to shed $22 billion, compared to $12 billion in the earlier forecast.