Browsing: Losses in African airlines

Airlines are expected to make big losses in 2020 with the challenges being experienced in containing new coronavirus variants and slower vaccination in some African countries according to the International Air Transport Association (IATA).

According to IATA, airlines are expected to post-tax losses of 47.7 billion in 2021 from the initial projection of $38 billion in December.

“Financial performance will be worse and more varied this year than we expected in our December forecast, because of difficulties in controlling the virus variants and slower vaccination in some regions,” said IATA.

The aviation sector is expecting $81 billion in cash burn despite large airlines having raised enough cash to cover for losses. IATA said that smaller airlines will need support from the government or to raise funds from banks or capital markets which will add to the debt burden and balance sheet leverage problem in the industry.

African airlines in 2020 …