The International Air Transport Association (IATA) has estimated that the airlines could lose $84.3bn this year.

The loss is estimated for a net profit margin of -20.1% as the coronavirus (Covid-19) continues to affect operations, according to the association’s financial outlook for the global air transport industry.

IATA also expects the revenues to drop by 50% to $419bn in 2020 compared with $838bn last year. Meanwhile, losses are expected to reduce to $15.8bn in 2021 with revenues increasing to $598bn.

Passenger revenues are expected to decline to $241bn from $612bn in 2019.

IATA director general and CEO said Alexandre de Juniac said: “Financially, 2020 will go down as the worst year in the history of aviation. On average, every day of this year will add $230m to industry losses. In total that’s a loss of $84.3bn.

“Provided there is not a second and more damaging wave of Covid-19, the worst of the collapse in traffic is likely behind us. A key to the recovery is the universal implementation of the restart measures agreed through the International Civil Aviation Organization (ICAO) to keep passengers and crew safe.

“And, with the help of effective contact tracing, these measures should give governments the confidence to open borders without quarantine measures.

“That’s an important part of the economic recovery because about 10% of the world’s GDP is from tourism and much of that depends on air travel. Getting people safely flying again will be a powerful economic boost.”

Last week, the ICAO released a new report and recommendations to support the restart and recovery of global air travel.