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IATA Expects Airline Industry to Remain Cash Negative Throughout 2021


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 ....

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