<p>Airline industry revenues are expected to remain 46 per cent lower in 2021 than the $838 billion booked in the last pre-coronavirus year of 2019, industry body IATA said Tuesday in a marked worsening of its forecasts.</p>.<p>Its previous outlook for a smaller drop of 29 per cent "was based on expectations for a demand recovery commencing in the fourth quarter of 2020."</p>.<p>That is now unlikely to materialise because of renewed Covid-19 outbreaks and government restrictions in response, said the federation representing 290 airlines.</p>.<p>Over the full year in 2020, IATA forecasts a 66-per cent drop in traffic compared to last year.</p>.<p>"The fourth quarter of 2020 will be extremely difficult and there is little indication the first half of 2021 will be significantly better, so long as borders remain closed and/or arrival quarantines remain in place," IATA director general Alexandre de Juniac said in a statement.</p>.<p>Even with drastic cost-cutting, airlines will need further government aid to avoid running out of cash, de Juniac said.</p>.<p>IATA also urged airports and air traffic controllers not to increase their prices to cover shortfalls from the vastly lower traffic.</p>.<p>And it warned that relief for airlines this year on fuel costs thanks to low oil prices is expected to fade away in 2021.</p>.<p>"Even if we maximize our cost-cutting, we still won't have a financially sustainable industry in 2021," de Juniac said, adding that 1.3 million jobs were at risk in the aviation industry alone, with potential knock-on effects on millions more.</p>
<p>Airline industry revenues are expected to remain 46 per cent lower in 2021 than the $838 billion booked in the last pre-coronavirus year of 2019, industry body IATA said Tuesday in a marked worsening of its forecasts.</p>.<p>Its previous outlook for a smaller drop of 29 per cent "was based on expectations for a demand recovery commencing in the fourth quarter of 2020."</p>.<p>That is now unlikely to materialise because of renewed Covid-19 outbreaks and government restrictions in response, said the federation representing 290 airlines.</p>.<p>Over the full year in 2020, IATA forecasts a 66-per cent drop in traffic compared to last year.</p>.<p>"The fourth quarter of 2020 will be extremely difficult and there is little indication the first half of 2021 will be significantly better, so long as borders remain closed and/or arrival quarantines remain in place," IATA director general Alexandre de Juniac said in a statement.</p>.<p>Even with drastic cost-cutting, airlines will need further government aid to avoid running out of cash, de Juniac said.</p>.<p>IATA also urged airports and air traffic controllers not to increase their prices to cover shortfalls from the vastly lower traffic.</p>.<p>And it warned that relief for airlines this year on fuel costs thanks to low oil prices is expected to fade away in 2021.</p>.<p>"Even if we maximize our cost-cutting, we still won't have a financially sustainable industry in 2021," de Juniac said, adding that 1.3 million jobs were at risk in the aviation industry alone, with potential knock-on effects on millions more.</p>