AIRLINES HEADING FOR $84B LOSS

Airlines are set to lose US$84 billion as the coronavirus pandemic reduces revenue by half to mark the worst year in the sector’s history, the International Air Transport Association (IATA) forecast on Tuesday. With most of the world’s airliners currently parked, IATA said revenue would likely fall to US$419 billion from US$838 billion last year. “Every day of this year will add US$230 million to industry losses,” said IATA director general Alexandre de Juniac. The average loss amounts to almost US$38 per passenger flown. In 2021, IATA warned losses could hit US$100 billion as traffic struggles to recover and airlines slash fares to win business. “Airlines will still be financially fragile in 2021,” De Juniac said, predicting “even more intense” competition. “That will translate into strong incentives for travellers to take to the skies again,” he added.