The International Air Transport Association (IATA) predicts a loss of $2 billion in 2020 for the aviation industry in Africa due to the coronavirus pandemic which has ravaged the industry. Global losses are expected to be less than $118.5 billion in 2020.

In its report released on Tuesday, titled 'Deep losses continue into 2021', IATA says Africa is expected to see profits fall to $1.7 billion in 2021, while globally, profits would fall to $38.7 billion. Passenger demand and airline capacity in Africa are also expected to contract by 72% and 62.8% respectively.

Cargo revenue will fare better than passenger revenue with a 36% increase in 2020 and will allow airlines to maintain their skeleton international networks IATA says, “the relative lack of cold chain facilities in Africa may delay vaccine distribution and this region is expected to experience a delayed recovery in financial performance.”

“African airlines have also received little government support and there have been a number of failures. The relative lack of cold chain facilities in the region may delay the distribution of vaccines and this region is expected to experience a delayed recovery in its financial performance,” the report notes.

The aeronautical industry should still see improvements from the second half of 2021 due to the increase in demand after a difficult first half of 2021.