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Airlines Expected To Lose $47.7 Billion in 2021 Amid the COVID-19 Pandemic

Airlines May Experience Bigger Loss in 2021 Compared to December Forecast

AIRLINES – The International Air Transport Association (IATA) said that the airlines may experience a $47.7 billion loss this year 2021 due to the COVID-19 pandemic.

It has been a year now since the World Health Organization (WHO) declared the COVID-19 a pandemic. The said coronavirus disease was reported to have been first recorded in China late 2019.

Currently, more than 200 countries and territories logged COVID-19 cases and lost many of its citizens to the disease. Lockdowns were implemented and travel restrictions are part of the fight against the spread of the coronavirus.

Airlines
Photo: WallpaperFlare

Amid the fight against the spread of the disease, several nations do not only travelers from specific countries with high cases of COVID-19. Truths be told that leisure traveling is not that easy to achieve now and it posts a lot of risks on the traveler.

Due to the COVID-19 pandemic that is still existing now, airlines may lose $47.7 billion this 2021. It is a bigger loss compared to the forecast done last December which was at $38 billion according to International Air Transport Association (IATA).

Based on a report on ABS-CBN News, in 2020, airlines lost $126 billion amid the locking down of cities, the international flights ban, and the closure of borders of several nations. Meanwhile, according to IATA, this 2021, the pre-pandemic level for global air passenger traffic may rise up to 43% now.

The IATA noted that the loss forecast is because of the huge challenge set in controlling the variants of COVID-19 according to the report. Several different variants of the disease were detected by different nations which prompted border closures and travel restrictions.

According to IATA, airlines in North America may gain better compared to those in European countries because of the slower vaccination drive in the latter nations. Furthermore, the less easing of the restrictions set for travelers is also a factor.

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