The International Air Transport Association (IATA) now expects the global airline industry to take a US$314 billion hit to passenger revenues in 2020 as a result of the Covid-19 pandemic, a decline of 55 per cent compared to 2019.

IATA¡¯s last estimate on 24 March was US$252 billion in lost revenues in a scenario where severe travel restrictions remain in place for three months. The updated figure takes into consideration the possibility of some of these restrictions extending beyond that three-month period, as well as a more severe worldwide impact, including Africa and Latin America, which initially had smaller outbreaks but are now reporting an increase in cases.

Full-year passenger demand worldwide is expected to be 48 per cent lower than that seen in 2019, driven largely by two factors: a predicted global recession and the impact of travel restrictions.

IATA¡¯s director general and CEO Alexandre de Juniac said: ¡°The industry¡¯s outlook grows darker by the day. The scale of the crisis makes a sharp V-shaped recovery unlikely. Realistically, it will be a U-shaped recovery with domestic travel coming back faster than the international market.¡±

The news comes after IATA estimated last week that 25 million jobs in travel and related sectors will be put at risk if the aviation industry is allowed to collapse.

De Juniac repeated the association¡¯s calls for governments to offer more support for airlines, adding: ¡°Financial relief for airlines today should be a critical policy measure for governments. Supporting airlines will keep vital supply chains working through the crisis. Every airline job saved will keep 24 more people employed. And it will give airlines a fighting chance of being viable businesses that are ready to lead the recovery by connecting economies when the pandemic is contained. If airlines are not ready, the economic pain of Covid-19 will be unnecessarily prolonged.¡±