The International Air Transport Association (IATA) has revised its forecast for 2021 to say net industry losses will hit $51.8 billion.
The losses are higher than the figure IATA gave in April, when it said it expected 2021 to record a $47.7 billion net industry loss.
However, Director General Willie Walsh said airlines are over the worst.
Demand is expected to stand at 40% of 2019 levels for 2021, rising to 61% in 2022.
“The magnitude of the COVID-19 crisis for airlines is enormous,” Mr Walsh said.
“Over the 2020-2022 period total losses could top $200 billion. To survive, airlines have dramatically cut costs and adapted their business to whatever opportunities were available.
“That will see the $137.7 billion loss of 2020 reduce to $52 billion this year. And that will further reduce to $12 billion in 2022. We are well past the deepest point of the crisis.
“While serious issues remain, the path to recovery is coming into view. Aviation is demonstrating its resilience yet again.”
He added: “People have not lost their desire to travel as we see in solid domestic market resilience.
“But they are being held back from international travel by restrictions, uncertainty and complexity.”