IATA predicts $95bn airlines cash burn in 2021 due to Covid-19

posted on 26th February 2021 by Eddie Saunders
IATA predicts $95bn airlines cash burn in 2021 due to Covid-19

By Edward Robertson

IATA is warning the world’s airline industry faces another bad year with 2021 expected to be cash negative as airlines burn between $75 billion and $95 billion just to stay in business.

The money required to keep airlines in business is nearly double the previously predicted sum of $48 billion and comes as the first half of 2021 is worse for the aviation industry than originally predicted.

Problems have arisen as new, more contagious variants have emerged around the world, causing governments to again close borders and in doing so, crushing hopes that as vaccination programmes rolled out across the world, so travel restrictions would ease.