IATA warns of hike in price of air travel

The International Air Transport Association (IATA) has warned that as movement restrictions ease gradually across the globe, passengers are likely to face a hike in prices of  air travel.

It says post-lockdown, airlines will be caught between low demand, excess capacity, and low fuel prices, which ideally should translate to lower fares. 

But the IATA notes that factors such as planned social distancing measures that require middle seats be left vacant and an increase in turnaround times due to sanitization procedures will raise unit costs.

IATA says airlines will see seat capacities reduce by 38 percent. 

Experts say the recovery in air travel will lag behind economic activity as the world emerges from the pandemic era.

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