This semi-annual report takes a broad look at how the airline industry is adding value for its consumers, the wider economy and governments, as well as for its investors.
- The impact of COVID-19 on the global economy will be severe. Global GDP growth is expected to contract by 5.0% in 2020.
- COVID-19 will have a significant impact on international trade (13% decline) which has been suffering from the US-China trade war.
- 2020 will be the worst year in history for airlines (net loss of $84.3bn) and losses will continue in 2021, albeit to a lesser extent.
- Airlines in all regions are expected to record negative operating income in 2020.
- Revenues are expected to fall by more than demand as airlines are significantly discounting ticket prices to help stimulate travel.
- The sharp fall in revenue led to high cash burn due to fixed and semi fixed costs. Airlines face pressure to reduce operating costs.
- 32 million jobs supported by aviation (including tourism) are at risk.
- Restoring air transport connectivity will be critical in the post-COVID period to support the recovery in economic development.