African Airlines have been projected to lose a whopping $1.9bn in 2021 and $1.5bn in 2022, the International Air Transport Association has said.
This was disclosed by a report titled. ‘Airline Industry Economic Performance – October 2021,’ released by IATA.
It revealed that the airline industry is facing an uneven recovery from the pandemic.
The airlines will lose $31.6 per passenger in 2021 and $21.8 per passenger in 2022.
According to the report, regions with large domestic markets, faster vaccination rollout and less restrictive government policy would continue to recover faster than the other parts of the world.
IATA said, “Financial performance in all regions is expected to improve in 2022 compared to 2021.
“However, at the aggregated level, net losses will extend to 2022 but will be only around one fifth of losses in 2021.
“Africa is lagging other regions in its vaccine rollout, which will impact international travel recovery.
“Airlines in the region are expected to post a $1.5bn net loss in 2022 on top of a $1.9bn loss in 2021.”
Airlines in North America are the strongest performers in the pre-crisis period IATA said, adding that they are projected to return to profitability in 2022 ahead of the other regions.
The regions profit is projected to be $9.9bn by 2022, while the United States will be the strongest performer.
In Asia-Pacific, net losses in 2022 are forecast to decline to $2.4bn from $11.2bn.
Middle Eastern airlines are expected to accumulate losses of $6.8bn and $4.6bn in 2021 and 2022, respectively.
Latin America is expected to post a $3.7bn net loss in 2022.