International Finance

Global aviation industry could lose $201 bn between 2020-22: IATA

Global aviation industry-IFM-image
Total passenger numbers to reach 2.3 bn in 2021 and 3.4 bn in 2022

The global aviation industry could potentially lose $201 billion between 2020 and 2022 as a result of Covid-19, according to the latest report released by the International Air Transport Association (IATA). Total passenger numbers could reach 2.3 billion in 2021 and increase to 3.4 billion in 2022.

In its report, IATA said that net 2020 loss estimates have been revised to $137.7 billion from $126.4 billion. Total industry losses in 2020-2022 are expected to reach $201 billion.

Willie Walsh, IATA’s Director General said at the airline trade association’s 77th Annual General Meeting, “To survive airlines have dramatically cut costs and adapted their business to whatever opportunities were available. We are well past the deepest point of the crisis. While serious issues remain, the path to recovery is coming into view. Aviation is demonstrating its resilience yet again.”

The association also approved a plan for the global aviation industry to reach net-zero carbon emissions by 2050. According to IATA, the use of sustainable aviation fuel (SAF) could potentially lead to 65pc of the necessary carbon emissions reduction.

IATA said, “Achieving sustainable global connectivity cannot be accomplished on the backs of airlines alone. Governments must be active partners in achieving net-zero by 2050.”

It further added that fuel suppliers must be accountable for delivering SAF at cost-competitive prices. The industry needs to produce 6mn t of SAF by 2025, which equates to 2 percent of the total requirement for aviation fuel.

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