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Covid-19 crisis to cost the global aviation industry $201 mn between 2020-2022

The aviation sector will only return to normal in 2023

The global aviation industry is projected to lose $201 billion between 2020 and 2022 due to the Covid-19 crisis before returning to profitability in 2023, according to a statement released by Willie Walsh, Director General of global airlines body International Air Transport Association (IATA).

Walsh told the media during his speech here at the 77th annual general meeting of IATA, “We are past the deepest point of the crisis. While serious issues remain, the path to recovery is coming into view. We are seeing improvements in finances. We expect 2021 losses to be nearly USD 52 billion — cut dramatically from the USD 138 billion lost in 2020. Losses will further reduce in 2022 — to about USD 12 billion. In total, the Covid-19 crisis will cost aviation USD 201 billion in losses before we return to profitability in 2023.”

“It is also clear that digital health credentials — documentation of vaccination or testing status — will be needed as borders re-open. Experience even at today’s low levels of travel tells us that there will be chaos in airports if we rely on paper processes. The EU Digital Covid Certificate (EU DCC) is an efficient and reliable standard to record test and vaccination status. If governments are looking for a standard to follow, this is our recommendation.”

He also mentioned that nearly two years after the Covid-19 pandemic began, there is no reason for the blanket border restrictions imposed by various governments. Around 70 percent of pre-Covid domestic flights are already up and running in India right now, a country that faced the worst wrath of the delta variant of Covid-19. Comparatively, only 20 percent of international flights are on play.

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