Latam airlines revenues fall 15 billion dollars amid coronavirus pandemic

Calculations of revenue losses and falling passenger demand (-41%) in Latin America and the Caribbean are calculated based on a stoppage in the sector.

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Airlines in Latin America and the Caribbean will see their revenues fall by at least 15 billion dollars this year due to the COVID-19 pandemic, and they require enormous financial support promoted by governments to stay afloat during the crisis and face the “complicated” start of operations once it is finished.

The vice president for the Americas of the International Air Transport Association (IATA), Peter Cerda, said Monday that calculations of revenue losses and falling passenger demand (-41%) in Latin America and the Caribbean are based on a stoppage in the sector that does not extend from the second half of the year.

In the region, “most countries will keep the borders closed for at least another 15-20 days,” and IATA “would expect” the sector to revive “around May,” said Cerda, who stressed that if the air travel paralysis prolongs, the sector will require more help from governments.

This is “without a doubt the biggest crisis that air transport has had in its history”, none before “has had the magnitude, the prolongation and the global impact” of this nor its economic and financial consequences, said Cerda in a virtual press conference.

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