Global airline industry will likely lose approximately $12 billion next fiscal year. However, its losses are expected to be cut by 78% due to carriers slowing recovering from the Covid-19 pandemic.

IATA represents more than 300 airlines operating over 80% of world’s air traffic. It has forecasted that industry losses will exceed $47.7billion in 2021, an increase of $51.8 billion from April’s estimate of $47.7billion.

In 2020, net losses were $137.7 Billion. That’s more than $126.4 billion IATA predicted earlier in the year. It brings total industry losses due to the pandemic at more than 200 billion.

“We are beyond the deepest points of the crisis,” IATA’s Director-General Willie Walsh declared during their annual meeting in Boston. This was the first annual meeting of IATA since June 2019. While there remain serious issues, the way to recovery is on its way.

IATA projected that the industry would be profitable by 2023. It also predicted that passenger numbers will rise from 2.3 billion to 3.4 billion next year.

Walsh claimed that international travel restrictions lifted due to the pandemic could increase demand, while criticizing the inability of countries to agree on guidelines for safety protocols like Covid testing windows, exemptions from age and validation of vaccinations.

Last month, the Biden administration stated in November that it would lift bansIt has information on international visitors, which was put into place in early stages of the pandemic. However, officials have not yet revealed a date.