Earlier this week, the International Air Transport Association IATA said its latest analysis showed that annual passenger revenues will fall by $252 billion if severe travel restrictions remain in place for three months.
That would mean a 44 percent drop compared to 2019 revenues, and is more than double the $113 billion loss previously predicted by IATA before countries around the world began introducing sweeping travel restrictions.
"It is the deepest crisis we ever had in our industry," IATA chief Alexandre de Juniac told reporters in a virtual briefing, calling on governments to step up and provide desperately needed liquidity.
55 airlines ground fleets
More and more airlines are grounding their planes as a result of Covid-19. Morocco suspended all flights and closed its airports on 19 March, Russia followed suit a week later, and in total 55 airline companies have grounded their fleets, including Air India, Emirates, Etihad and Transavia.
Meanwhile, Air Canada is laying off about 3,600 employees, as well as 1,549 flight attendants at its low-cost subsidiary Rouge; Singapore Airlines has announced that it will receive $13 billion from sovereign fund Temasek Holdings, which controls 55 percent of the company.
The Sydney-based consultancy Capa Center for Aviation said that many airlines will be bankrupt by May if governments don’t step in with financial rescue plans.
Economic engine
Hardest-hit European countries are Germany, Spain and France.
IATA figures show that Spanish airlines have had 93.7 million fewer passengers since the start of the crisis, resulting in a $13 billion revenue loss, risking 750,000 jobs and a $49.4 billion contribution to Spain’s economy; German operators report 84.4 million fewer passengers, a $15 billion loss, risking 400,000 jobs and $28 billion to Germany’s economy; companies in France have sold 65 million fewer tickets, representing a $12 billion revenue shortfall, 318,000 jobs and $28.5 billion lost to the French economy.
“The air transport industry is an economic engine, supporting up to 12.2 million jobs across Europe and $823 billion in GDP,” the IATA said in a statement, pointing out that “every job created in the aviation industry supports another 24 jobs in the wider economy” and calling on governments to provide “urgently needed support” because of "the vital importance of the air transport industry.”
