Airlines are forecast to lose almost NZ$56 billion in revenue during 2021, on top of the current $169 billion already lost during 2020.
The International Air Transport Association said the Covid-19 pandemic continues to dramatically affect their industry, and will continue to do so until, at the earliest, late 2021.
The losses across the industry are predicted to be about five times worse than those during the 2008-2009 recession.
Vaccine testing and a health passport system being developed have improved the outlook for airlines, with the association hoping that governments will move quickly to ease travel restrictions once vaccines are available.
CEO Alexandre de Juniac said while the expected losses in 2021 are lower than earlier forecast, that was "nothing to celebrate".
Overall, air traveller numbers are likely to be around 61 per cent lower this year than typical levels.