airline profit losses

IATA forecasts 2021 air cargo revenues to hit record $175B

A white plane taking off, approach camera with underside visibile.

The air cargo market is soaring this year and 2022 is looking even better. The International Air Transport Association on Monday estimated that cargo volume for airlines will grow 7.9% in 2021 compared to 2019 and demand will heat up to 13.2% above pre-pandemic levels next year. 

Cargo revenues are expected to reach a record $175 billion in 2021, an upward revision of $23 billion from April, and stay near that level at $169 billion in 2022 as cargo yields soften from 15% to 7% growth. Airlines...

https://www.freightwaves.com/news/iata-forecasts-2021-air-cargo-revenues-to-hit-record-175b

How much money have airlines lost so far in 2021?

A yellow Spirit Airlines plane and two small United Airlines jets taxi around an airport.

Financial losses for the global airline industry were sequentially smaller in the second quarter, but growing corporate optimism for the next 12 months isn’t shared by all as the COVID-19 delta variant undermines economic reopening and travel in many regions.

Airlines collectively lost $6.9 billion in the April-May period in 2021 compared to $14.4 billion in the first quarter of the year, according to new data from the International Air Transport Association. Leading the recovery were U.S....

https://www.freightwaves.com/news/how-much-money-have-airlines-lost-so-far-in-2021

Airlines to lose $48B despite banner year for cargo

Brown tail of UPS jet in foreground, cargo containers and American Airlines cargo warehouse in background.

Airlines will rake in record-high cargo revenues in 2021 on double-digit growth in shipping demand, but lose $47.7 billion because of weak air travel as most countries struggle with controlling virus variants and vaccinating populations, the International Air Transport Association said Wednesday.

The trade group downgraded its outlook from December, when it projected a $38 billion loss, with the net profit margin falling to minus 10.4% from minus 7.1%. The revised forecast represents a big...

https://s29755.pcdn.co/news/airlines-to-lose-48b-despite-banner-year-for-cargo

Airlines ask Biden-Buttigieg DOT to focus on COVID recovery

Line of planes in queue on taxiway wait to takeoff.

U.S. airlines, casting themselves as a vital cog in the economic recovery from the pandemic, appealed Monday to the incoming Biden administration for more flexible, risk-based COVID measures that will enable the safe revival of air travel and with it the revenues necessary to survive.

In a letter to Transportation Secretary-designate Pete Buttigieg obtained by FreightWaves, the Airlines for America (A4A) warned that some carriers, and thousands of their workers, may not be around to transport...

https://www.freightwaves.com/news/airlines-ask-biden-buttigieg-dot-to-focus-on-covid-recovery

Airline group issues distress call as projected losses reach $128B

A white jet takes off with other planes sitting in the foreground and buildings from downtown Houston in the background.

The International Air Transport Association on Tuesday warned that airlines are on track to lose nearly $130 billion this year — significantly more than the group’s June estimate of $84 billion — because of the coronavirus crisis, and that the aviation and travel sectors will be crippled for a long time unless governments increase financial aid.

The trade association said member carriers will burn through $77 billion in cash during the second half of 2020, almost $13 billion per month, despite...

https://s29755.pcdn.co/news/airline-group-issues-distress-call-as-projected-losses-reach-128b

Airline cargo divisions finally gain a little R-E-S-P-E-C-T

A large white jet with blue tail lifts off from runway on sunny day. View is from behind the plane, to the side a bit.

Air cargo is the cash cow for many passenger airlines during the coronavirus pandemic, an unusual result of decimated travel demand forcing passenger networks to shut down and carriers repurposing airplanes for cargo-only service. 

Other than cargo and loyalty programs, airline revenues are extremely weak as the industry racks up tens of billions of dollars in losses.

Air France-KLM, Aeromexico, IAG Group/British Airways and Korean Air significantly exceeded last year’s cargo revenues in the...

https://s29755.pcdn.co/news/airline-cargo-divisions-finally-get-some-r-e-s-p-e-c-t

Airlines say survival depends on bailouts, reopened borders

Travelers wearing masks, waiting to go through checkpoint at airport in Greece.

The International Air Transport Association (IATA) is frustrated that governments aren’t doing more to help the airline industry survive the coronavirus pandemic. It is pleading for quick reopening of borders and assistance to help airlines maintain liquidity.

International passenger demand fell 91.9% in July compared to the same month last year — a slight improvement from the 96.8% contraction the industry recorded in June. International capacity fell 85.2% year-over-year. Overall, global...

https://www.freightwaves.com/news/iata

Exclusive: Largest airline trade association to reduce workforce 20%

A big gray plane getting loaded with cargo pallets from side door with hydraulic lift on a sunny day.

Reflecting the financial distress of its airline members in the midst of the coronavirus pandemic, the International Air Transport Association is planning to reduce its worldwide staff by a fifth, a source at the trade association said.

IATA represents nearly 300 airlines operating scheduled and non-scheduled air service.

Airlines around the world are expected to lose $84 billion in 2020 and are slashing hundreds of thousands of people from payrolls. Airlines have made radical cuts to...

https://s29755.pcdn.co/news/exclusive-largest-airline-trade-association-to-reduce-workforce-20

COVID hits Southwest Airlines with $1.5B Q2 loss

A Southwest Airlines jet pained in blue takes off at desert airport. Southwest posted a $1.5 billion second-quarter loss.

Southwest Airlines (NYSE: LUV) recorded a $1.5 billion adjusted net loss in the second quarter, a direct result of the devastating impact of the coronavirus pandemic on passenger travel.

Revenues plummeted 83% to $1 billion. Including special charges, Southwest’s net loss was $915 million. Before taxes, Southwest lost $1.2 billion.

During the second quarter of 2019, Southwest had $5.9 billion in revenue and net income of $714 million.

Delta Air Lines (NYSE: DAL), United Airlines (NASDAQ: UAL) and...

https://www.freightwaves.com/news/covid-hits-southwest-airlines-with-1-5b-q2-loss

United Airlines: Least worst is best

Two white United jets pointed nose-to-nose at each other. United Airlines is being cautious about adding aircraft to its schedule while the economy is still depressed.

When it comes to airline economics, being the least worst of the bunch is a plus. 

United Airlines (NASDAQ: UAL) executives on Wednesday took pride that the company’s record-setting second-quarter net loss was only $1.6 billion. They said the airline is outperforming big domestic competitors during the COVID crisis by better managing capacity and that stanching financial losses now is a harbinger for strong results when the economy improves. 

Last week, Delta Air Lines (NYSE: DAL) reported a $5.7...

https://www.freightwaves.com/news/united-airlines-least-worst-is-best

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