IATA: $29 billion loss expected for Asia-Pacific airlines in 2020
Airlines in the Asia Pacific region will be hardest hit by the COVID-19 pandemic, with losses of about $29 billion for 2020, says IATA.
July 16, 2020
By PLA Editor
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Airlines in the Asia-Pacific region will be the hardest hit by the COVID-19 crisis, with losses expected to be $29 billion for 2020. This is more than a third of the $84.3 billion industry losses globally.
The Asia-Pacific region was the first region to feel the brunt of the COVID-19 crisis. The region’s airlines will see passenger demand (measured in revenue passenger kilometers, RPK) collapse 53.8% this year, while capacity (in available seat kilometers, ASK) will be reduced by 39.2%.
“2020 is the worst year in aviation history and airlines are in survival mode. The carriers in Asia-Pacific will experience the largest losses at $29 billion. That’s a loss of $30.09 per passenger. In this bleak outlook, the priority is for the region’s governments to facilitate the restart of air connectivity in line with the International Civil Aviation Organization’s Take-off guidance and principles,” said Conrad Clifford, IATA’s Regional Vice President for Asia Pacific.
“It will take a few years for the industry to get back to 2019 levels of activity. In the interim, governments will need to continue providing financial relief and assistance to airlines as well as flexibility in slot usage. We are also working with airports and air navigation service providers to identify areas of cooperation with a view to reducing costs for airlines,” said Clifford.
The updated country-level impact is given below.