International Air Transport Association (IATA) has released a new analysis showing that some 25 million jobs are at risk of disappearing with plummeting demand for air travel amid the COVID-19 crisis. Per IATA, globally, ~65.5 million people are dependent on the aviation industry, including sectors such as travel and tourism. Among these, 2.7 million are direct airlines jobs.
IATA predicts, that in a scenario of severe travel restrictions lasting for three months 25 million jobs in aviation and related sectors are endangered across the globe. Out of these, 11.2 million jobs are in Asia – Pacific itself. IATA also states that within 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.
Owing to the CoVid-19 situation, airlines are calling on governments to provide immediate financial aid to help airlines to remain as a viable business able to lead the recovery when the pandemic is contained. Specifically, IATA has asked for direct financial support, loans, loan guarantees and support for the corporate bond market and tax relief.
Bottomline
The exact impact of the CoVid-19 caused shutdowns will only be known once it is over. Over the past couple of months, things have changed rapidly, causing IATA to alter their predictions repeatedly over a while. The numbers are big and a massive cause for concern, given most industry folk are taking the view that it would take between 1 and 3 years for demand to return to pre-CoVid-19 levels.
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