Airline Trade Group Warns Of $75-to-$95Bln Global 'Cash Burn' In 2021 As Pandemic Lingers

Losses by global airlines due to coronavirus-related travel restrictions continue to rise, with $95 billion "cash burn" expected this year under the worst case scenario, the International Air Transport Association (IATA) said in a report on Wednesday

WASHINGTON (UrduPoint News / Sputnik - 24th February, 2021) Losses by global airlines due to coronavirus-related travel restrictions continue to rise, with $95 billion "cash burn" expected this year under the worst case scenario, the International Air Transport Association (IATA) said in a report on Wednesday.

"Estimates for cash burn in 2021 have ballooned to the $75 billion to $95 billion range from a previously anticipated $48 billion," an IATA press release explaining the report said. "With governments having tightening border restrictions, 2021 is shaping up to be a much tougher year than previously expected."

Tighter travel restrictions by many nations have severely curtailed international flights and forward looking bookings for the summer travel peak in July and August are currently 78 percent below levels in February 2019, the IATA said.

An optimistic scenario puts 2021 passenger demand at 38 percent of pre-pandemic levels in 2019, with airlines burning through $75 billion in cash over the year, IATA said. The pessimistic scenario predicts a $95 billion in losses.

The IATA recommended additional aid from governments to keep carriers flying and creating a system of health documents that would include travelers' coronavirus vaccination history.

The IATA noted that a growing number of airlines - including Air New Zealand, Copa Airlines, Etihad Airways, Emirates, Qatar Airways, Malaysia Airlines, RwandAir, and Singapore Airlines - have done or are committed to doing trials with an IATA Travel Pass.