Airline global might end up with huge losses during this current financial year. It’s estimated by the leading analysis companies that the entire airline companies located around the world might face a stupendous loss of $118.5 billion. Soon after the lockdown many countries completely stripped their imports and exports of material between different countries. It looks like for three months there were zero flights operated between the countries. This pandemic has brutally affected the travel and tourism industry for a long period of time. This is one of the main reasons that global airline companies shave faces a huge loss during the current financial year.
The International Air Transport Association has made an announcement that the airline companies might face a loss of $84.3 billion. It looks like the second wave of the virus might bring in some of the new restrictions for traveling across different countries. Already many European countries have started announcing its partly lockdown during the half of the week. The travel restriction might force these airline companies to face several losses even during the upcoming months. Even though the airline is receiving a decent amount of traffic during the last couple of weeks, it looks like there might be chances for the decline of traffic in the upcoming months.
It’s estimated that this pandemic might bring in losses during the next year which is currently estimated at $38.7 billion. This number might significantly change based on the effectiveness of the vaccine on patients and its manufacturing and supply to the world countries. Even though many pharma countries have an announcement about its vaccine, still it might consume a few more months for getting approved. The second wave of the virus is expected to bring in severe effects than it experienced during the first wave. World Health Organization has been instructing the world countries to follow social distancing and other basic hygiene for preventing themself from the deadly virus.
It’s made clear that the Airline industries operating between different countries have cut costs by 45.8% for encouraging the passengers through its discount offers. Even though these Airline companies have reduced their flight ticket cost, they could able to receive decent traffic for managing their operational costs. It’s stated that the revenue of these airline companies is down 60.9%. It’s calculated that $66 is lost for each passenger which equals a net loss of $118.5 billion. It looks like the airline industry will get back to track once the quarantine restrictions are removed around different countries. Its expected that airline traffic might get back on track during the last quarter of 2021.
Cargo carriage between countries is not as badly affected as passenger flights. Many international flight travel companies have reported a huge loss in their annual revenue during this year. Flight manufacturing companies like Boeing and Airbus have also reported an annual loss during its financial year. It’s expected that the world economy has contracted up to 12% mainly due to the global lockdown which prevented countries from imports and exports. Most of the manufacturing companies have been closed their production units which resulted in an annual revenue loss.