KUALA LUMPUR (Nov 18): The global airline industry is recovering gradually from Covid-19 but revenue passenger kilometres (RPKs) are still estimated to be only 40% of pre-crisis levels in 2021, said the International Air Transport Association (IATA).
In its 2021 end-year report, IATA said air cargo has recovered to above 2019 levels and is expected to be strong in 2022 with the support of strong global trade.
It said vaccines will allow some governments to relax restrictions and support global travel to reach 61% of 2019 levels in 2022.
IATA said the industry is forecast to make net losses of US$52 billion this year, cutting these losses to US$12 billion in 2022.
It said airlines are forecast to cut costs by 31% in 2021 versus 2019.
“As the traffic recovery continues, airlines will face cost pressures.
“Airlines continued to receive life support from their governments, totalling US$243 billion since the beginning of the pandemic.
IATA said airline financial performance is expected to recover in all regions in 2022. North America is expected to turn to profitability in 2022.
IATA said although rising costs will put pressure on airline financials, real travel costs will be lower than pre-crisis as airlines will target to stimulate demand in re-opening markets.
It said world trade is expected to remain strong in 2022, which will support air cargo volumes.
It said industry expectations for both air passenger travel and cargo demand are optimistic based on the latest business confidence surveys.
“Cargo volumes, which are already above pre-crisis levels, are expected to increase further on the back of capacity improvements as passenger capacity picks up.
“However, there are still concerns about new Covid waves and uncertainties regarding vaccine progress in some markets,” it said.