The International Air Transport Association (IATA) has issued a statement, addressing the current aircraft grounding worldwide and the resulting financial losses.
Due to maximized efforts to stop the spread of the coronavirus, aircraft around the world have been grounded, with only a small number of flights still going to limited destinations. As a result, heavy financial losses have ensued, and the IATA has issued a statement regarding the severity of the foregone revenue. In a previous statement, the IATA projected the total impact of coronavirus mitigation efforts to cost the airline industry approximately $252 billion, but has since revised that estimate to $314 billion.
Since January, flights have decreased by 80%, and the IATA is expecting the revenue from air travel ticket sales to decrease by 55% in the forthcoming year. The trade association is projecting to open domestic air travel by the third quarter 2020, but is cautioning against opening air travel at the international level. IATA’s CEO issued a statement, calling on governments to turn their attention towards the airline industry and begin putting plans in place to reopen economies as a move to restore air travel consumer confidence.
Information for this briefing was found via the International Air Transport Association. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.