AVN 68.60 No Change ▼ 0.00 (0%)
BOP 8.88 No Change ▼ 0.00 (0%)
CHCC 132.40 No Change ▼ 0.00 (0%)
DCL 9.40 No Change ▼ 0.00 (0%)
DGKC 105.13 No Change ▼ 0.00 (0%)
EFERT 61.28 Increased By ▲ 0.08 (0.13%)
EPCL 44.75 No Change ▼ 0.00 (0%)
FCCL 21.48 Decreased By ▼ -0.01 (-0.05%)
FFL 14.92 Increased By ▲ 0.04 (0.27%)
HASCOL 14.55 No Change ▼ 0.00 (0%)
HBL 130.10 No Change ▼ 0.00 (0%)
HUBC 79.60 No Change ▼ 0.00 (0%)
HUMNL 7.04 No Change ▼ 0.00 (0%)
JSCL 24.05 Decreased By ▼ -0.04 (-0.17%)
KAPCO 28.80 No Change ▼ 0.00 (0%)
KEL 3.81 No Change ▼ 0.00 (0%)
LOTCHEM 12.85 No Change ▼ 0.00 (0%)
MLCF 39.40 No Change ▼ 0.00 (0%)
OGDC 99.65 Increased By ▲ 0.15 (0.15%)
PAEL 33.06 No Change ▼ 0.00 (0%)
PIBTL 12.42 Increased By ▲ 0.01 (0.08%)
PIOC 91.40 Decreased By ▼ -0.10 (-0.11%)
POWER 9.67 No Change ▼ 0.00 (0%)
PPL 91.32 No Change ▼ 0.00 (0%)
PSO 194.00 No Change ▼ 0.00 (0%)
SNGP 42.47 Increased By ▲ 0.05 (0.12%)
STPL 14.10 Increased By ▲ 0.68 (5.07%)
TRG 60.99 Increased By ▲ 0.74 (1.23%)
UNITY 25.35 Increased By ▲ 0.04 (0.16%)
WTL 1.10 No Change ▼ 0.00 (0%)
BR100 4,231 Decreased By ▼ -21.54 (-0.51%)
BR30 21,389 Decreased By ▼ -14.14 (-0.07%)
KSE100 40,807 Decreased By ▼ -223.94 (-0.55%)
KSE30 17,160 Decreased By ▼ -134.97 (-0.78%)
Business & Finance

Airline revenues forecast at half 2019 levels in 2021: IATA

  • IATA also urged airports and air traffic controllers not to increase their prices to cover shortfalls from the vastly lower traffic.
27 Oct 2020

PARIS: Airline industry revenues are expected to remain 46 percent lower in 2021 than the $838 billion booked in the last pre-coronavirus year of 2019, industry body IATA said Tuesday in a marked worsening of its forecasts.

Its previous outlook for a smaller drop of 29 percent "was based on expectations for a demand recovery commencing in the fourth quarter of 2020."

That is now unlikely to materialise because of renewed Covid-19 outbreaks and government restrictions in response, said the federation representing 290 airlines.

Over the full year in 2020, IATA forecasts a 66-percent drop in traffic compared to last year.

"The fourth quarter of 2020 will be extremely difficult and there is little indication the first half of 2021 will be significantly better, so long as borders remain closed and/or arrival quarantines remain in place," IATA director general Alexandre de Juniac said in a statement.

Even with drastic cost-cutting, airlines will need further government aid to avoid running out of cash, de Juniac said.

IATA also urged airports and air traffic controllers not to increase their prices to cover shortfalls from the vastly lower traffic.

And it warned that relief for airlines this year on fuel costs thanks to low oil prices is expected to fade away in 2021.

"Even if we maximize our cost cutting, we still won't have a financially sustainable industry in 2021," de Juniac said, adding that 1.3 million jobs were at risk in the aviation industry alone, with potential knock-on effects on millions more.