Global airlines see upturn amid huge Covid losses, says Walsh 

Airlines in North America are forecast to return to profit as early as next year.

IATA chief executive Willie Walsh

Global airlines have projected a sharp reduction in industry losses next year as a multi-speed recovery from the coronavirus crisis gets under way, but revised up the financial toll inflicted by the pandemic in 2020 and 2021.

The International Air Transport Association, the industry's main trade body, predicted that net losses at airlines would narrow to $11.6bn (€10bn) in 2022 from $51.8bn (€44.5bn) this year.

The losses for 2021 were revised up from $47.7bn (€41bn) estimated in April. IATA also revised up losses for 2020 to $137.7bn from $126.4bn (€108.6bn) estimated earlier.

While airlines across all regions are expected to perform better, those in North America are forecast to return to profit next year.

"We are past the deepest point of the crisis," IATA director general Willie Walsh told the group's annual meeting. 

While serious issues remain, the path to recovery is coming into view."

Yet, IATA urged governments to keep wage support measures and slot wavers in place until international traffic recovers.

It expects international travel demand to double next year and reach 44% of the 2019 levels. However, the vaccination rate, as well as the lifting of government-imposed border restrictions, will determine the pace of recovery.

Reuters