IATA predicts multi-billion dollar loss for global airline industry

The International Air Transport Association (IATA) says airlines globally will lose US$51.8 billion this year with losses persisting next year. However, losses in 2022 are forecast to drop to US$11. 6 billion.

According to a new estimate released by IATA, American carriers will enjoy much better results, with estimated 2022 profits of  US$9.9 billion following projected losses of  US$5.5 billion this year. 

IATA projects that global passenger demand, measured by the number of  miles flown by paying airline passengers, will end 2021 at 40% of  the 2019 level, before rising to 61% of  last year's total in 2022. 

The total number of  airline passengers this year will be a projected 2.3 billion, compared with 4.5 billion in 2019.   

The World Bank Group says developing countries must reduce and restructure debt to overcome the challenges brought on by the covid-19 pandemic.

The multilateral agency has released reports looking at the global economy and recovery from the impact of  covid-19.

The World Bank says total debt owed by low-income countries amounted to a record US$860 billion in 2020 - that was a 12 per cent increase over the prior year.

This was driven by more borrowing and spending to address the health and social needs brought on by the pandemic.

The World Bank noted that, prior to the pandemic many low- and middle-income countries were in a vulnerable position, with slowing economic growth, and public and external debt at elevated levels.

It says external debt stocks of  low- and middle-income countries combined, rose to 8 point 7 trillion US dollars in 2020. 

The World Bank says these states must work to manage debt.

Meanwhile, World Bank Chief  Economist Carmen Reinhart, says it's a long road ahead before developing states achieve sustained recovery from the pandemic.

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