"The economic shock of the Covid-19 crisis is expected to be at its most severe in the second quarter when GDP is expected to shrink by 6 per cent", Iata said.
"The scale of the crisis makes a sharp V-shaped recovery unlikely".
As of early April, the number of flights globally was down 80 per cent compared to 2019, largely due to severe travel restrictions imposed by governments to fight the spread of the virus, according to Iata.
In its latest assessment, the association factored in longer-than-expected restrictions on worldwide travel, and the virus spreading in Africa and South America.
The economic dislocation will eliminate 55% of the annual passenger revenue that global carriers were expected to generated before the crisis began, Brian Pearce, IATA's chief economist, said on a conference call.
According to IATA, the updated figures reflect a significant deepening of the crisis since then, and reflect the severe domestic restrictions lasting three months and some on global travel extending beyond that time period.
"We could see more than a half of passenger revenues disappear".
"For the next 8 to 12 months, we do not see a very strong aircraft demand coming from airlines that have absolutely no cash, â€ÂÂÂ de Juniac said on the call, predicting more reshuffling of the Boeing and Airbus order books".
"Several governments have stepped up with new or expanded financial relief measures but the situation remains critical. Airlines could burn through US$61 billion of cash reserves in the second quarter alone".
IATA, which represents almost 300 airlines, said in the Asia-Pacific region 11.2 million jobs linked to the aviation industry and tourism sectors were at risk and it was forecasting 128,300 fewer aviation-related jobs in New Zealand.
"Without urgent relief, many airlines will not survive to lead the economic recovery".
As well as asking governments for relief measures... Every airline job saved will keep 24 more people employed.
"De Juniac said that passengers, both business and leisure, need their confidence restores before travelling, not only in terms of being personally safe but also that their travels would not be interrupted by the disease or by quarantine restrictions".