- The region will face a loss in perfomance this year by -57.4% in passenger demand;
- In total, airlines are expected to lose $84.3 billion in 2020.
The aviation sector in Latin America is set to lose $4 billion in 2020 according to a financial outlook for the global air industry, released by the International Air Transport Association (IATA) this week.
The region entered the crisis with a delay from the rest of the world. According to the report, Latin America’s governments have implemented some of the most draconian measures in terms of border closures which could both delay and slow down the recovery. The region will face a loss in perfomance this year by -57.4% in passenger demand, and -43.4% in passenger capacity.
IATA concludes that all regions will face losses in 2020. The crisis has taken on a similar dimension in all parts of the world with capacity cuts lagging about 10-15 percentage points or more behind the over-50% fall in demand.
In total, airlines are expected to lose $84.3 billion in 2020 for a net profit margin of -20.1%. Revenues will fall 50% to $419 billion from $838 billion in 2019. In 2021, losses are expected to be cut to $15.8 billion as revenues rise to $598 billion.