IATA: nearly 80% of Airlines said profits fell sharply in the second quarter

On August 24, surging journalists learned from the international air transport association that the quarterly survey conducted by IATA on the chief financial officers and air cargo managers of airlines showed that in the second quarter of 2020, the aviation industry suffered the most severe impact since the global financial crisis, and the demand and profits showed the largest decline. The demand for air passenger transport dropped sharply, and the demand for freight transport improved slightly in the second quarter after a sharp decline in the first quarter. It is expected that the industry’s profit outlook will remain weak in the next 12 months.

specifically, novel coronavirus pneumonia attacks on profit prospects, 77% of respondents said that industry profits fell sharply in the second quarter. 19% of respondents said that profitability had improved, supported by strong air cargo demand. With the suspension of most passenger flights, the passenger capacity dropped sharply, and some airlines quickly shifted their focus to cargo business, resulting in an increase in freight volume. 68% of respondents predicted that profits would deteriorate or not improve in the coming year due to the slow removal of border restrictions and the recovery of passenger travel confidence. About a third of respondents expect profitability to improve as passenger flights resume. < / P > < p > in terms of revenue, passenger revenue fell further in the second quarter of this year. 57% of respondents expect passenger revenue to continue to decline over the next 12 months. Respondents said that due to the slow recovery of demand, air ticket prices may decline, and stressed the need for measures or incentives to stimulate the recovery of tourism. 19% of respondents expect that ticket prices will gradually resume to rise once the supply and demand relationship is restored. In the second quarter, freight revenue increased significantly, with 67% of respondents saying the revenue increased. Strong demand for air cargo and insufficient abdominal capacity have boosted cargo revenue. 62% of the respondents expect a drop in freight volume in the coming year. The global economic recession has an impact on air cargo. With the recovery of luggage compartment cargo capacity, freight revenue is expected to decline, and the prospect is not optimistic. < / P > < p > in terms of demand growth, 96% of respondents said that air passenger demand deteriorated in the second quarter. 50% of the respondents expect that passenger demand will further decline or remain stable in the next 12 months, while the other half expect passenger demand to increase. In the April survey, only 12.5% of respondents expected an improvement in demand. Nevertheless, the outlook for demand recovery remains challenging. 30% of respondents said freight demand improved in the second quarter of 2020. Over the next 12 months, half of the respondents expect the growth in freight volume to be driven by improved global economic and business activity. Novel coronavirus pneumonia, which is a major factor in

, has been reduced by 45% of respondents. The result shows that the staffing of the second quarter of 2020 has been reduced, but 52% of respondents indicated that their staff size did not change, benefiting from government assistance and staff vacation plans. Looking to the future, however, 55% of respondents expect to reduce the number of employees in the next 12 months. Respondents said airlines would need to cut costs further as the scope of their business shrank as a result of the epidemic. Another 19% of the respondents expect to increase the number of staff after the resumption of operation, and the current staff status has been reduced to the minimum. In terms of the impact of the new epidemic situation, 42% of the respondents predicted that it would take more than two years for the demand to return to the pre crisis level, while only 19% of the respondents expected to recover within 6 to 12 months. Asia Pacific and Europe will be the first to recover, while North America and Latin America will recover later than others.