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The International Air Transport Association (IATA) announced that the airline industry would have to wait until 2022 to turn cash-positive.
This prognosis differs from what IATA predicted previously and suggests carriers worldwide will be burning at least $75 billion in cash in 2021 compared to the original estimate of $48 billion.
“With governments tightening border restrictions, 2021 is shaping up to be a much tougher year than previously expected,” IATA director general and CEO Alexandre de Juniac said in a statement. “The expectation that the industry will not turn cash-positive until 2022 is yet another reminder of the severity of the crisis.”
While de Juniac initially expected a rebound in the last quarter of 2021, the newest research now states the range of losses is between $7 billion and $16 billion.
The IATA report also analyzes the optimistic scenario regarding vaccine distribution and growing testing capacity, with airlines required to be proactive in facilitating the recovery.