Losses of Airlines Linked to the Pandemic Exceed $200 Billion

The International Air Transport Association (IATA) has stated that global airline losses due to the COVID-19 pandemic will exceed $200 billion amidst continued travel restrictions and demand for long-haul flights throughout 2022. During its annual conference in Boston, USA, on Monday, the association projected that airlines would incur losses of $11.6 billion in the upcoming year. Furthermore, the association raised its estimates for expected losses this year and increased its estimates for losses from the previous year. Bloomberg News indicated that the airline sector's losses due to the pandemic, estimated by IATA to be approximately $201 billion, wipe out the profits of the sector over the nine years prior to the pandemic's onset at the beginning of last year. While the local and regional travel sectors have begun to recover, long-haul flights remain sluggish, despite their significant importance for cash flows for many airlines. Despite the United States preparing to reopen its skies to arrivals from Europe next month, other markets for long-haul flights, especially those connecting Europe with Asia and North America, continue to suffer from stagnation.