The airline industry association IATA claims that airlines cannot cut costs enough to preserve jobs and avoid bankruptcies next year.
Despite airlines taking drastic measures to reduce costs, around 50 percent of their costs are fixed or semi-fixed, at least in the short term, IATA writes in a report. Thus, costs have not fallen to the same extent as revenues.
IATA (The International Air Transport Association) reiterates its request for government aid measures to sustain airlines financially and avoid major staff cuts.
IATA also wants to see Covid-19 tests before flying, to enable travel without quarantine.
According to IATA, total revenue for the airline industry is expected to decrease by 46 percent in 2021, compared to 2019. This is based on expectations of a recovery in demand that will begin in the fourth quarter.
