COVID-19: Air passenger revenue declined 69% to $189bn, says IATA

The International Air Transport Association (IATA) says 2020 was the worst year ever in the airline industry across the world as passenger revenues fell by 69 percent to $189 billion.

This is contained in the IATA’s world air transport statistics (WATS) recent report.

The association said the 2020 performance on global air transport is due to the devastating effects of the COVID-19 crisis.

“1.8 billion passengers flew in 2020, a decrease of 60.2% compared to the 4.5 billion who flew in 2019,” part of the report reads.

“Industry-wide air travel demand (measured in revenue passenger-kilometers, or RPKs) dropped by 65.9% year-on-year.

“Total industry passenger revenues fell by 69% to $189 billion in 2020, and net losses were $126.4 billion in total.

“The decline in air passengers transported in 2020 was the largest recorded since global RPKs started being tracked around 1950.”

IATA said Africa ranked third with the largest loss of passenger traffic at 68.5 percent; airlines carried a total number of 34.3 million passengers in the continent – down by 65.7 percent compared to 2019.

Reacting to the industry’s loss, Willie Walsh, IATA’s director-general, said: “2020 was a year that we’d all like to forget. But analyzing the performance statistics for the year reveals an amazing story of perseverance.

“Many governments recognized aviation’s critical contributions and provided financial lifelines and other forms of support. But it was the rapid actions by airlines and the commitment of our people that saw the airline industry through the most difficult year in its history.”

Also, the report showed that air cargo was “the bright spot in air transport for 2020” against passenger flight due to transportation of vaccines, personal protective equipment (PPE) and vital medical supplies.

IATA had predicted that “airlines will still be financially fragile in 2021. Passenger revenues will be more than one-third smaller than in 2019. And airlines are expected to lose about $5 for every passenger carried.

“Although losses will be significantly reduced in 2021 from 2020 levels, the industry’s recovery is expected to be long and challenging”.

It also said Africa profits will decline to $1.7 billion in 2021 while globally, profits will fall to $38.7 billion this year.