IATA Expects Airline Industry to Remain Cash Negative Throughout 2021
(25 Feb 2021) IATA has announced that it expects the airline industry to remain cash negative throughout 2021.
Previous analysis (November 2020) indicated that airlines would turn cash positive in the fourth quarter of 2021. At the industry level, airlines are now not expected to be cash positive until 2022.
Estimates for cash burn in 2021 have ballooned to the $75 billion to $95 billion range from a previously anticipated $48 billion. The following factors play into this estimate:
Weak Start for 2021: It is already clear that the first half of 2021 will be worse than earlier anticipated. This is because governments have tightened travel restrictions in response