Brazil Airlines

IATA estimates $4 billion in pandemic related losses

By June 12, 2020 No Comments

The International Air Transport Association estimates that the Latin American Airlines will lose US$4 billion (almost R$20 billion Reais) in 2020.

The Global loss should hit the mark of US$84.3 billion due to borders shutdown as a strategy for disease containment.

The regional vice president for the Americas, Peter Cerda, made a call for security protocols to be adopted by governments, mentioning that the aircrafts are already being adapted for more safety, so the domestic operations can resume no later than July and international in about three months.

From all sectors affected by the corona virus, the Air Travel industry was the worst hit and if this situation persists, many other companies  could file for chapter 11 bankruptcy and stay afloat. Latam Airlines group and its affiliated in Chile, Peru, Colombia, Ecuador and USA filed for chapter 11, two weeks later after Avianca Airlines did.

Mr Cerda also alerted to the fact that some countries in south America like Colombia, Chile, Panama and Peru still didn’t offer any financial  support to companies. In Brazil, the three main companies, GOL, Azul and Latam Brazil  are being assisted by the government with an emergency support. The Brazilian Airlines are working to reduce its cost with staff.