By Rajesh Kumar Singh

BOSTON, (Reuters) – Global airlines Monday predicted a dramatic reduction in industry losses in the next year. However, a multispeed recovery from coronavirus crises gets underway. They also revised up the financial impact of the pandemics in 2020-2021.

According to the International Air Transport Association (the industry’s largest trade organization), net losses for airlines will decrease from $51.8 billion this fiscal year to $11.6 billion by 2022.

From $47.7 Billion in April, the losses for 2021 had been increased by IATA. IATA has also increased 2020 losses to $137.7 Billion from the $126.4 billion estimate earlier.

Although airlines in every region are likely to see better performance, North America is expected to turn a profit next year.

Willie Walsh, IATA’s Director General said at the annual meeting that the “deepest point” of the crisis is over. Although there remain serious challenges, recovery is on the horizon.

IATA encouraged governments to continue with wage support measures until international travel recovers.

This company anticipates an increase in international travel demand of at least 24% next year. It also expects to reach 44% for the levels reached in 2019. Temporal recovery is dependent on how high the vaccine rate and whether or not the government lifts any restrictions that have been imposed at borders.

Walsh said that people are prevented from travelling internationally because of uncertainty, limitations and complexity.

Walsh stated that vaccines should be available for everyone who needs them, even though governments see inoculations only as a solution to the current health crisis.

According to estimates, domestic travel demand will reach 93% in 2022 at the same level as pre-pandemic, which is an increase of 20 percentage points.

IATA predicts that total passenger traffic will rise to 3.4billion next year, up from 2.3billion in 2021. However, it will still be less than 4.5 billion by 2019.

The 2022 passenger revenue will increase by 67%, to $378 billion. IATA forecasts that air cargo will continue to be a strong spot with a 13.2% increase in demand over the levels of 2019.