IATA: Airlines financial losses eased in 4Q2020

IATA, via its Airlines Financial Monitor for Dec2020 and Jan-2021, reported (01-Mar-2021) the following financial and operating highlight:

• Initial 4Q2020 financial results show airline losses continued, But were smaller than in 3Q2020 helped by cost cutting measures and robust cargo revenues;
• Airlines are still expected to continue to burn cash throughout 2021 as the recovery in travel demand is delayed to 2H2021;
• Global airline share prices declined in Janu-2021 amid new travel restrictions. European carriers under-performed other regions as the pace of vaccine rollout was slower than expected,increasing the risk to summer travel;
• Oil and jet fuel price reached pre-pandemic levels. Oil supply cut extensions from OPEC+ and expectations about global economic recovery led the price rally despite the lock downs;
• Looking forward, airlines will face cost pressures once the recovery starts as fuel is the largest variable cost and fuel hedging is limited at present. [more - original PR]