Air transport sector to lose $ 84 billion: Aata

Air transport sector to lose $ 84 billion: Aata

Geneva: The air transport sector is expected to lose more than $ 84 billion this year and a $ 419 billion decline in revenue due to restrictions issued on aviation by various countries in the wake of the Kovid-19. This has been said in the report released by the International Air Transport Association (AITA) on Tuesday. It states that the revenue of the air transport sector will come down to half this year. Last year it stood at $ 838 billion. It is estimated to be $ 419 billion in the year 2020. 

Loss of $ 230 million per day The
report said that the aviation industry would suffer an average loss of $ 230 million every day due to a big drop in revenue. There is a possibility of loss of $ 84.3 billion during the year, which will be equivalent to 20.1 percent. Aita has projected revenue of $ 598 billion and loss of $ 15.8 billion in 2021. 

Alexander de Zunike, director general of AITA, said, "The year 2020 will be the worst year in the history of aviation, depending on the financial situation." Every day the industry will lose an average of $ 230 million. There will be a total loss of $ 84.3 billion. This year the number of passengers is estimated to be 2.2 billion and thus the airline companies will suffer a loss of $ 37.54 per passenger. In view of this, they need to get financial help from the governments. 

The number of passengers will also come down, the
report said that in April this year, air passenger traffic decreased by 95 percent compared to a year ago. Although it is gradually improving now, in spite of this, the traffic in the revenue passenger kilometer unit throughout the year is expected to be 54.7 percent less than in 2019. The net number of passengers will also come down to around half at 2.25 billion. This would be equal to the 2006 level. Airline companies are expecting a 60 per cent reduction in revenue received as passenger fares due to the fall in passenger numbers. 

According to Aita, this year the figure will come down to $ 241 billion. Last year, airlines earned $ 612 billion in passenger fares. Airline companies are expected to reduce fares in a bid to woo passengers. This will reduce per passenger earnings by 18 percent this year.