The pandemic is causing a loss of $ 10 billion more than expected

The pandemic is causing a loss of $ 10 billion more than expected

The COVID-19 pandemic is expected to cost airlines $ 10 billion more than previously anticipated. The information from the organization that represents travel companies around the world was presented in a report in the British newspaper “The Guardian”.

In all, aviation is expected to lose nearly $ 48 billion in 2021, up from the $ 38 billion projected in December 2020. that is it (international air Transportation organisationHe pointed out that one of the reasons was also the slowdown in the arrival of the vaccine in countries such as France and Germany, in addition to the emergence of new types of the virus around the world – which caused restrictions on international travel.

The International Air Transport Association (IATA) warning came when the CEO ofLow costRyanair, Mikhail O’LearyA cut includes up to 25% fewer flights in Europe, he warned. to me O’LearyIn addition to expectations that travel between the United Kingdom and European Union countries will become more expensive due to BrixiLeisure travel should not return to normal until 2023.

Despite this, the association’s projections indicate that 2.4 billion people will travel by plane in 2021.

On the other hand, American Airlines is expected to suffer less than last year: a loss of $ 5 billion instead of $ 11 billion. The reason will be the restoration of domestic flights in the country, which is also visible in China. According to IATA, this shows People would look forward to traveling again.

Although airlines have increased the number of cargo flights, the International Federation claims that it is not sufficient to cover the losses in passenger travel. As a result, operating revenues of airlines are projected to reach only 55% of 2019 levels.

READ  The winners of the mega-auction have instances of corruption and environmental damage

You May Also Like

About the Author: Camelia Kirk

"Friendly zombie guru. Avid pop culture scholar. Freelance travel geek. Wannabe troublemaker. Coffee specialist."

Leave a Reply

Your email address will not be published. Required fields are marked *