IATA: Airlines in India are likely to suffer a revenue loss of 11.2 billion dollars this year putting 2.9 million jobs at risk as passenger demand falls by 47 per cent due to the COVID-19 crisis, the International Air Transport Association (IATA) said on Friday.
The latest estimates from IATA indicate a worsening of the country’s impact from coronavirus pandemic and travel restrictions in the Asia Pacific region. On April 14, IATA released an updated analysis showing that the COVID-19 crisis will see global airline passenger revenues drop by 314 billion dollars in 2020, a 55 per cent decline compared to 2019.
Airlines in the Asia Pacific will see the largest revenue drop of 113 billion dollars in 2020 compared to 2019 (minus 88 billion dollars in March 24 estimate) and a 50 per cent fall in passenger demand compared to 2019 (minus 37 per cent in 24 March estimate).
With #airline industry in crisis we thank @ioevoice for this timely initiative. Our estimate is that 25 million jobs in #aviation and industries that rely on air connectivity are at risk. Urgent government support is vital! https://t.co/xoDVJYMsYV
— IATA (@IATA) April 24, 2020
These estimates are based on a scenario of severe travel restrictions lasting for three months with a gradual lifting of restrictions in domestic markets followed by regional and intercontinental.
“The situation is deteriorating. Airlines are in survival mode. They face a liquidity crisis with a 61 billion dollars cash burn in the second quarter,” said Conrad Clifford, IATA’s Regional Vice President for Asia-Pacific.
⚠️ "With airlines having only on average around two months worth of cash in the beginning of this year, it is pretty obvious that many airlines, if not most airlines in the industry are going to run out of cash." #COVID19
Watch Brian Pearce, Chief Economist, explain more ? pic.twitter.com/qrng8QDt67
— IATA (@IATA) April 24, 2020
“We have seen the first airline casualty in the region. There will be more casualties if governments do not step in urgently to ensure airlines have sufficient cash flow to tide them over this period,” he said in a statement.
? Passenger revenues may plummet by $314 billion in 2020, a 55% decline from 2019. Passenger demand is expected to be down 48% as well when compared to 2019.
Find out more here: https://t.co/Ll1al2PbEZ pic.twitter.com/SKBlYmaEi1
— IATA (@IATA) April 24, 2020
Clifford identified India, Indonesia, Japan, Malaysia, the Philippines, South Korea, Sri Lanka and Thailand as priority countries that need to take action. In India, passenger demand in 2020 is estimated to fall by 47 per cent to 89.7 million. IATA called for a combination of direct financial support, loans, loan guarantees and support for the corporate bond market, and tax relief.
? Airlines may burn through $61 billion of their cash reserves during the second quarter, while posting a quarterly net loss of $39 billion.
Read our cash burn analysis here: https://t.co/zXL4CtaOKf pic.twitter.com/8fD7NQExUq
— IATA (@IATA) April 24, 2020
“Providing support for airlines has a broader economic implication. Jobs across many sectors will be impacted if airlines do not survive the COVID-19 crisis,” said Clifford.
“Every airline job supports another 24 in the travel and tourism value chain. In the Asia Pacific, 11.2 million jobs are at risk, including those that are dependent on the aviation industry such as travel and tourism,” he said.
⚠ Air transport supports 6.2 million jobs in #Africa. A collapse in aviation would put 3.1 million at risk:
?? 252,100 jobs
??125,400 jobs
?? 500,500 jobs
??193,300 jobs
?? 336,200 jobs
??73,700 jobs
??284,300 jobs @AfricanAirlines @AfDB_Group #StrongerTogether— IATA (@IATA) April 23, 2020
Airlines continue to perform an important role currently with the transport of essential goods including medical supplies and the repatriation of thousands of people stranded around the world by travel restrictions.
Passenger confidence will also be hit by personal economic concerns in the face of a recession. #travel #economics
➡️https://t.co/oxuLyQIfiO pic.twitter.com/knPrm0uysv
— IATA (@IATA) April 21, 2020
And after the COVID-19 pandemic is contained, governments will need airlines to support the economic recovery, connect manufacturing hubs, and support tourism, said Clifford. “That’s why they need to act now — and urgently — before it is too late.”
Return to air travel expected to be slow – domestic travel markets predicted to pick up first. #WeeklyChart #aviation
? https://t.co/ZVHnvMHiaN pic.twitter.com/5vo33j8Jqr
— IATA (@IATA) April 18, 2020