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IATA predicts airlines must wait until 2022 to be cash positive
February 25th 2021
The International Air Transport Association (IATA) said overnight airlines would continue to burn cash throughout calendar 2021 and not turn cash positive until 2022. Read More » The outlook was a more pessimistic scenario from IATA's previous outlook issued in November 2020, when it forecast airlines would be cash positive by the fourth quarter of 2021. "With governments tightening border restrictions, 2021 is shaping up to be a much tougher year than previously expected," IATA director general and CEO, Alexandre de Juniac, said in a statement. "The expectation that the industry will not turn cash-positive until 2022 is yet another reminder of the severity of the crisis." IATA said the total cash burn for 2021 was expected to be in the US$75-US$95 billion range, up from its previous forecast of US$48 billion.
