The plummeting demand for air travel amid the COVID-19 crisis will cost the Middle East 0.9 million jobs, a new IATA research says, while the loss of jobs on a global scale will be 25 million.
The report which describes the impact of COVID-19 on the industry as ‘devastating’ says, “A lifeline to the airlines now is critical.”
Specifically, the International Air Transport Association (IATA) calls for Direct financial support, loans, loan guarantees and support for the corporate bond market and tax relief.
The analysis released yesterday says, “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 m airlines jobs – 11.2 m jobs in Asia-Pacific, 5.6 m jobs in Europe, 2.9 m jobs in Latin America, 2.0 m jobs in North America, 2.0 m jobs in Africa and 0.9 m 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 per cent at its worst point, and airlines burning through $61 bn in cash.