Big losses for the airline industry still in 2021. I must admit I for one have always thought that by 2022 covid-19 would be over due to the vaccinations, but I'm getting less sure of that.
Global carriers could face nearly $48 billion in losses this year as the troubled sector is struggling to rebound from the coronavirus pandemic, the International Air Transport Association (IATA) has said.
The new figures, presented by the global airlines body on Wednesday, are around 25% worse than it had previously expected. It had earlier forecast a $38 billion deficit. The airline industry’s losses are expected to amount to around a third of what the troubled sector saw in 2020, when it lost more than $126.4 billion as the spread of the coronavirus forced governments to shut borders.
https://www.rt.com/business/521711-a...ses-2021-iata/
Any financially sensible household has an emergency fund (and sometimes insurances) against loss of employment, sickness, and disruption to their cashflows. I've never understood why this principle doesn't seem to apply to institutions, and in this sense airlines with beginner finances should get as much sympathy as a person who spends lavishly, even on margin, and then loses their job as opposed to the person who took care of their finances while they had an income. Finnair's bottom line was very healthy in 2020, which allows them to survive until 2022 with zero or minimal operations, but the same cannot be said of many others. That's why Finnair deserves our sympathy in my opinion.
Looks like Buffet had a good guess about the future earlier when he sold his airline positions.