A new report has predicted that commercial airlines will record a $52 billion profit loss at the end of 2021 as COVID-19 continues to hit hard in the wake of the third wave of the virus.

Leading financial educational hub, Stockapp, in the report explained that the growing number of COVID-19 cases and fears of travel restrictions caused by the deadly delta variants of the virus are responsible for the projected loss.

“The growing number of COVID-19 cases, fears of travel restrictions due to Delta variant and concerns about the economic recovery caused a new hit to the world’s largest airlines, hoping for a steady upturn in the aftermath of the pandemic,” Stockapp in the report said.

According to the report, most of the losses for 2021, amounting to $21 billion, will be generated by European airlines, closely followed by Asian Pacific with a projection of  $11.2 billion profit loss.

Middle Eastern and African are expected to lose around $8.7 billion in 2021, followed by Latin America and North America with a $5.6 billion and $5.5 billion profit loss, respectively.

Another reason for the projected loss is said to be concerns about economic recovery.

It added that the global airline industry was facing massive changes in travel habits occasioned by COVID-19, adding that catching the virus is the biggest concern preventing people from travelling.

The report stated that the revenues of commercial airlines will be 43 per cent lower than revenue earned before the COVID-19 outbreak.

Prior to the outbreak, the aviation industry experienced steady growth in revenue with a compound annual growth of about 5.3 per cent, even reaching $838 billion.

The revenue streams of the aviation industry dropped drastically after the outbreak of COVID-19 as most of the biggest airlines were unable to cover their operating cost.