Confidence in travel slides further, with less than half willing to fly
The trade group, which represents 290 airlines, called for an extension to waivers of the so-called use-it or lose-it airport slot rule through the winter season in light of the lack of forward visibility. The rule, requiring carriers to use 80 per cent of slots, has been suspended through October 24 in the European Union.
“That will give airlines the flexibility they need to focus on meeting passenger demand as it evolves, free from the burden of trying to predict what their schedule might look like a year from now,” IATA Chief Executive Officer Alexandre de Juniac said.
IATA forecasts airlines will lose a combined $US84 billion ($122 billion) this year and almost $US16 billion in 2021, more than three times the outflow after the 2008 slump.
Declining fares mean they’ll need to fly 80 per cent full just to break even, so that most will carry on losing money even as services resume, it said, predicting yields will be down 18 per cent globally this year.