Iranian Airlines' Losses Cross $180m

EghtesadOnline: Iranian airlines are estimated to have sustained 30,000 billion rials ($187 million) in losses by April 3, as coronavirus has halted flights within the country and abroad.

News ID: ۷۴۹۸۲۴

06 April 2020

Secretary of the Association of Iranian Airlines Maqsoud Asadi-Samani also said three airlines have grounded their entire fleet, Fars News Agency reported.

“The number of air passengers reduced by 76% and flights by 90% during Norouz [Iranian New Year] holidays [March 20-April 3], according to the latest data released by Iran Airports Company,” Financial Tribune quoted him as saying.

Hamid-Reza Seyyedi, an official with the company, said IAC revenues have declined by 80%, following the shutdown of domestic and foreign flights.

“The company has sustained losses to the tune of 2,000 billion rials [$12.5 million] in the 12th month of the last fiscal year [Feb. 20-March 19],” he added.

Reza Jafarzadeh, spokesperson of Iran Civil Aviation Organization, says airplanes and airports are being disinfected regularly to counter the spread of coronavirus, Mehr News Agency reported.

By the end of May 2020, most airlines in the world will be bankrupt, says CAPA—a trusted source of market intelligence for the aviation and travel industry—adding that coordinated government and industry action is needed now if catastrophe is to be avoided.

British Airways CEO Alex Cruz says that today’s coronavirus crisis is more serious than any previous aviation crisis.

As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants.

Cash reserves are running down quickly as fleets are grounded and flights there operate much less than half full.

Forward bookings are far outweighed by cancellations and each time there is a new government recommendation, it is to discourage flying. Demand is drying up in ways that are completely unprecedented. Normality is not yet on the horizon, Aviation24 reported.

IAC's 11-Month Report

IAC's latest comprehensive report on Iranian airports' traffic shows a total of 349,953 takeoffs and landings were registered during the first eleven months of last Iranian year (March 21, 2019-Feb. 19, 2020), which indicates 3% decline compared with the similar period of last year.

More than 43.16 million passengers were transported during the period under review, indicating a 1% decline year-on-year.

Over 431,213 tons of cargos were handled during the same period, which also shows a 1% decrease compared with the corresponding period of last year, IAC's latest report published on its website shows.

A total of 291,209 takeoffs and landings were registered by domestic flights during the 11-month period, down 2% YOY. More than 34.21 million passengers and 253,004 tons of cargo were transported domestically, both indicating a 1% rise YOY.

On the international front, 58,744 takeoffs and landings were registered, down by 8% YOY. A total of 8.95 million passengers and more than 178,209 tons of cargo were transported to and from overseas destinations, down 5% and 3% respectively compared with the corresponding period of last year.

Similar to previous IAC reports, Tehran’s Mehrabad International Airport was the busiest domestic airport during the period with 114,061 takeoffs and landings, registering a 2% decline.

The airport handled 13.61 million passengers, showing no significant change, and around 94,84 tons of cargo, indicating a 1% rise YOY.

Mehrabad transported 167,360 passengers from March 15 to March 31 to register a 76% downturn compared with last year’s corresponding period.

The airport registered 2,092 takeoffs and landings during the 16-day holiday, indicating a 63% decrease year-on-year, Mehr News Agency reported, citing data from airport’s general directorate.

March 17 was the airport’s busiest day during the period, as 16,290 passengers were transported and 181 takeoffs and landings were registered on that day.

Mehrabad's Terminal 1 has been shut down to reduce crowding at the airport amid the spread of the coronavirus.

As reported by ILNA, all flights operated by airlines of Varesh, Zagros and Kish Air have been transferred to Terminal 2 and no flights are handled at Terminal 1.

Mashhad International Airport was the second busiest airport during the 11 months under review with 55,777 takeoffs and landings, indicating a 1% YOY decrease. It transported 8.15 million passengers and 77,068 tons of cargos, down 1% and 4% respectively year-on-year.

Imam Khomeini International Airport registered 40,197 takeoffs and landings (a 9% YOY decrease), while transporting more than 6.49 million passengers (a 4% decline) and over 129,710 tons of cargos showing a 1% decrease YOY. IKIA ranked third on the list of Iran’s busiest airports during the period.

From the 11th Iranian month's perspective (Jan. 21-Feb. 19), a total of 29,429 takeoffs and landings were registered, which indicate a 2% decline compared with the similar period of last year.

More than 3.53 million passengers and 31,018 tons of cargos were transported during the month, indicating a 5% and 15% fall YOY respectively.

The report shows 25,387 takeoffs and landings were registered by domestic flights from Jan. 21 to Feb. 19, unchanged YOY. Close to 2.97 million passengers and 21,884 tons of cargo were transported domestically, indicating a 3% and 6% decrease respectively YOY.

On the international front, 4,042 takeoffs and landings were registered, showing a 10% decrease YOY. A total of 553,675 passengers and more than 9,134 tons of cargo were transported to and from overseas destinations, indicating a 17% and 31% decrease respectively YOY.

Iran Airports Company is an arm of the Ministry of Roads and Urban Development, which manages 54 airports across the country.