Air traffic will recover from the COVID-19 pandemic more slowly than previously expected as vaccination delays and government "risk aversion" slows the reopening of routes, global airlines body IATA has said.
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Global traffic this year will amount to 43 per cent of pre-crisis levels based on passenger numbers and distance flown, the International Air Transport Association said, below the 51 per cent it had forecast late last year.
IATA also predicted industry losses of $US47.7 billion ($A62 billion) in 2021. While that represents an improvement on last year's $US126.4 billion ($A164 billion) deficit, the organisation warned that airlines would continue to need government wage support.
"This crisis is longer and deeper than anyone could have expected," Director General Willie Walsh said.
The latest industry outlook also sheds light on the multi-speed recovery underway, with large domestic markets led by the United States and China surging ahead. Europe, by contrast, will see only one-third of its 2019 traffic this year, IATA predicts.
Industry revenue is likely to grow 23 per cent from last year's low to $US231 billion, it also forecast - still far below the $US607 billion generated a year earlier.
Cargo demand will continue to be a bright spot outpacing passenger traffic with 13.1 per cent growth in 2021 to exceed its 2019 level, IATA predicted.
Total cargo volumes are seen at 63.1 million tonnes, close to their pre-crisis peak in 2018.
Australian Associated Press
