RIO DE JANEIRO, BRAZIL – The International Air Transport Association (IATA) estimates that Brazil’s airlines will lose US$10.8 billion (R$54.2 billion) in revenue in 2020 as a result of the pandemic.
The loss will translate into a 57 percent drop in revenue in 2020 compared to last year. The figures were released by the association on Thursday morning, July 30th, during an online press conference with journalists from the region.
At the end of June, the association had projected a US$10.2 billion loss in the region for the year, down 53 percent from 2019. With each report, the association has raised its projected losses for the region due to lack of support from local governments and flight restrictions.
“Latin America has been by far the region with the most restrictions in the world,” said Peter Cerdá, IATA’s vice-president for the Americas.
IATA also said that Brazil’s Gross Domestic Product (GDP) is expected to suffer a negative impact of US$6.64 billion as a consequence of the crisis.
The data takes into account the general impact on the economy by also considering the tourism segment and its link to the airlines. In terms of employment, the Brazilian economy could lose 318,500 jobs in 2020.
As for the United States, the association’s estimate is for losses of approximately US$137.1 billion in the year, a 69 percent drop in revenue compared to 2019.
“With the restrictions, the economic impacts in the region have continued to show a growth trend. We can’t sustain planes on the ground for long,” Cerdá said.
Source: Estadão Conteúdo