IATA: 25 million jobs at risk with the airline shutdown
According to a new analysis published by the Association - ATTACHMENT
The International Air Transport Association has released new analysis showing that some 25 million jobs are at risk of disappearing with plummeting demand for air travel amid the COVID-19 crisis.
Globally, the livelihoods of some 65.5 million people are dependent on the aviation industry, including sectors such as travel and tourism. Among these are 2.7 million airlines jobs. In a scenario of severe travel restrictions lasting for three months, IATA research calculates that 25 million jobs in aviation and related sectors are endangered across the world:
11.2 million jobs in Asia-Pacific
5.6 million jobs in Europe
2.9 million jobs in Latin America
2.0 million jobs in North America
2.0 million jobs in Africa
0.9 million jobs in the Middle East.
In the same scenario, airlines are expected to see full year passenger revenues fall by $252 billion (-44%) in 2020 compared to 2019. The second quarter is the most critical with demand falling 70% at its worst point, and airlines burning through $61 billion in cash.
Airlines are calling on governments to provide immediate financial aid to help airlines to remain viable businesses able to lead the recovery when the pandemic is contained.
Specifically, IATA calls for:
Direct financial support
Loans, loan guarantees and support for the corporate bond market
Looking Ahead: Re-booting the Industry
Alongside vital financial relief, the industry will also need careful planning and coordination to ensure that airlines are ready when the pandemic is contained.
IATA is scoping a comprehensive approach to re-booting the industry when governments and public health authorities allow. A multi-stakeholder approach will be essential.
One initial step is a series of virtual meetings—or summits—on a regional basis, bringing together governments and industry stakeholders. The main objectives will be:
Understanding what is needed to re-open closed borders, and
Agreeing solutions that can be operationalized and scaled efficiently.
Summit dates are being confirmed in the expectation of a start before the end of April.
The COVID-19 wider economic impact from air transport collapse report (11 pages) is attached to this AVIONEWS.
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