The corona virus pandemic is expected to result in a decrease in air traffic revenue of $ 252 billion (£ 211 billion), the industry leader predicted.
The International Air Transport Association (Iata) updated its analysis of the Covid-19 effect on March 24 and more than doubled the previous estimate of losses of 113 billion pounds (96 billion pounds).
The new figures take into account the severity of global travel restrictions, which can last for three months, and the global recession that is expected to occur after 12 weeks of traffic.
Iata estimates that passenger revenue could drop 44 percent year-on-year.
“The airline is facing the worst crisis,” said Alexander Junior, CEO and CEO of Iata. “In a few weeks, our worst scenario so far seems better than our latest estimates.
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“But without immediate support, the government will not remain an industry. Airlines need $ 200 billion in liquidity support to sell.
“Some governments have advanced, but many more must follow.”
Demand for passengers is expected to decrease by 38% during 2020 compared to 2019. Industrial capacity can only be reduced by 65% in the second quarter (from April 1 to June 30).
The area most affected is likely the Asia-Pacific region, where passenger revenue will fall 37% year-on-year to $ 88 billion (GBP 74 billion), followed by Europe, which will lose $ 76 billion ($ 64 billion) Pound) ,
While updating the results, Iata urged governments around the world to intervene and propose a package of measures to support the aviation industry, including direct financial assistance to airlines. Loans, loan guarantees and market support for corporate bonds or corporate central banks; and tax relief such as wage tax relief and temporary tax exemptions and other government levies paid in 2020.
“My message to the government dealing with this is to thank you for your guidance,” said Alexander de Uniak, CEO and CEO of IATA. “And keep an eye on the situation as you develop because you might have to do more.