The association is seeking development and deployment of a rapid, accurate, affordable, easy-to-operate and scalable test, that would replace the need for quarantine measures.
It has pledged to work with the International Civil Aviation Organisation (ICAO) and health authorities to develop and implement a solution quickly.
"Reopening borders supported by systematic testing of all passengers prior to departure should be on the priority list of governments," said Iata director general and chief executive Alexandre de Juniac.
According to an Iata survey of 4,700 passengers across 11 markets in late August, 84% agreed testing should be required of all travellers, while 88% said they were willing to be tested as part of the travel process.
Some 65% said they agreed those who test negative for Covid-19 should not be required to quarantine.
Respondents also said stringent Covid screening measures for all passengers and mask-wearing were among the top signals they look to for reassurance travel is safe.
According to Iata, international travel is down 92% on 2019 levels, stressing tentative efforts to reopen borders have been hampered by quarantine requirements and ever-changing Covid measures, both of which it believes would be negated by testing.
"The key to restoring the freedom of mobility across borders is systematic Covid-19 testing of all travellers before departure," said de Juniac.
"This will give governments the confidence to open their borders without complicated risk models that see constant changes in the rules imposed on travel. Testing all passengers will give people back their freedom to travel with confidence. And that will put millions of people back to work."
Iata said testing before departure would create a "clean" travel process, as opposed to testing on arrival, which the association said dents passenger confidence with travellers knowing they could be required to quarantine in the event of a positive test.
De Juniac added Iata did not foresee Covid testing becoming a permanent fixture of the air travel experience, but stressed it would likely be needed medium-term for air travel to restart in earnest.
"Many see the development of a vaccine as the panacea for the pandemic," said de Juniac.
"It will certainly be an important step, but even after an effective vaccine is globally recognised, ramping up production and distribution is likely to take many months. Testing will be a much-needed interim solution."
