Airlines lose more than 250,000 euros per minute

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Airlines will continue to lose significant amounts of cash in the second half of the year, the International Aeronautics Association (IATA) warned on Tuesday. This calls on the authorities of each country to mobilize to further support the aviation sector, which represents nearly 5 million jobs worldwide.

IATA estimates that during the second half of the year, all airlines will lose $ 300,000 (over 250,000 euros) in cash every minute. Which comes to 77 billion dollars (65 billion euros) after six months. In the second quarter some fifty billion dollars were lost. IATA does not foresee a return to profit until 2022.

“Deep” crisis

"The crisis has been going on for a long time and is deeper than we thought," commented IATA official Alexandre de Juniac. "The next few months are traditionally unprofitable for airlines. They normally survive on the cushion they were able to build up during the full period of July and August but that peak did not occur this year."

Financial support

The companies have already received a cumulative amount of 160 billion in public subsidies. A more than welcome support which made it possible to avoid numerous bankruptcies. "Most of these aid programs are now coming to an end," continues Mr. de Juniac. "It is therefore time to ask governments for additional measures or to extend the existing provisions. The risk of bankruptcies and job losses is enormous for the coming months."

Tests at the airport?

IATA has long advocated for rapid corona testing at the airport before departure. Quarantine measures at destination would then no longer be essential. Travelers would have more confidence to travel and the authorities would dare to reopen the borders, according to the association which represents some 290 companies, carrying 82% of international air traffic.