Airline Industry Lowers Demand Forecast as Virus Variants Curb Travel

Feb. 24—GENEVA — Global demand for air travel in the second half of the year is expected to reach only 38 per cent of the pre-crisis levels of 2019, the International Air Transport Association (IATA) said on Wednesday in Geneva.

The industry group had previously hoped for a rate of 51 per cent, but it lowered its forecast as governments have tightened travel restrictions in response to new and more infectious coronavirus variants.

The new estimate is based on the assumption that travel restrictions will be gradually lifted once wealthier economies have vaccinated high-risk groups, creating some demand for the peak travel season in the northern hemisphere around the middle of the year.

In this scenario, airlines would face cash losses of 75 billion dollars this year. If the travel curbs last longer, they would burn through 95 billion dollars, the IATA estimates.

"If governments are unable to open their borders, we will need them to open their wallets with financial relief to keep airlines viable," said IATA chief Alexandre de Juniac.

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