Global airline industry's passenger revenues have dropped by $314 billion in 2020, which is a 55 per cent decline compared to 2019 due to the outbreak of Covid-19, the International Air Transport Association's updated analysis showed on Tuesday.
On March 24, IATA estimated that $252 billion will be the amount of revenues that could be lost in a scenario with severe travel restrictions lasting three months.
According to IATA, the updated figures reflect a significant deepening of the crisis since then, and reflect the severe domestic restrictions lasting three months and some on international travel extending beyond that time period.
Besides, the full-year passenger demand is expected to go down by 48 per cent compared to 2019 due to the overall economic developments.
"The economic shock of the COVID-19 crisis is expected to be at its most severe in Q2 when GDP is expected to shrink by 6 per cent (by comparison, GDP shrank by 2 per cent at the height of the Global Financial Crisis)," IATA said in a statement.
"Passenger demand closely follows GDP progression. The impact of reduced economic activity in Q2 alone would result in an 8 per cent fall in passenger demand in the third quarter."
As per the statement, travel restrictions will deepen the impact of recession on demand for travel.
"The most severe impact is expected to be in Q2. As of early April, the number of flights globally was down 80 per cent compared to 2019 in large part owing to severe travel restrictions imposed by governments to fight the spread of the virus," the statement said.
"Domestic markets could still see the start of an upturn in demand beginning in the third quarter in a first stage of lifting travel restrictions. International markets, however, will be slower to resume as it appears likely that governments will retain these travel restrictions longer."
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