IATA: 25 million jobs at risk

Thursday, April 9, 2020

The International Air Transport Association has warned  that some 25 million jobs are at risk of disappearing with plummeting demand for air travel amid the Covid-19 crisis.

The livelihoods of some 65.5 million people are dependent on the aviation industry on a global level which includes  sectors like travel and tourism where 2.7 million constitutes airlines jobs.

Considering severe travel restrictions lasting for three months, IATA research calculates that 25 million jobs in aviation and related sectors are endangered across the world.

According to the analysis, 11.2 million jobs in Asia-Pacific, 5.6 million in Europe, 2.9 million in Latin America, two million in both North America and Africa and smaller numbers in the Middle East.

Also the airlines are expected to see full year passenger revenues fall by $252 billion (down by 44 per cent) in 2020 compared to 2019.

In the  second quarter it is expected that the demand falling 70 per cent at its worst point, and airlines burning through $61 billion in cash.

Airlines are seeking  immediate financial aid from the government to help airlines to remain viable businesses able to lead the recovery when the pandemic is contained.

Alexandre de Juniac, IATA director general said that there are no words to adequately describe the devastating impact of Covid-19 on the airline industry. The economic pain will be shared by 25 million people who work in jobs dependent upon airlines.Airlines must be viable businesses so that they can lead the recovery when the pandemic is contained.A lifeline to the airlines now is critical.

GlobalData said the impact had been dramatic which forced companies  like as British Airways to cease operations at major airports with developments in the last few days placing the airline industry at a crossroads.

Nick Wyatt, head of tourism at GlobalData, explained that which way the industry goes from here remains to be seen, but government action, or in some cases a lack thereof, will be a key determinant.

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