Global airline revenues will be down by at least 50% in 2020, says IATA
Global airlines and airports have made renewed calls for direct, debt-free financial support from governments and for Covid-19 testing to replace quarantine rules to prevent further business collapse.
“Job losses—inside and outside the industry—mount with each day that borders are closed,” said Alexandre de Juniac, CEO of the International Air Transport Association (IATA).
“To make sure that we have a viable aviation sector at the end of this crisis a second round of financial relief is unavoidable.”
IATA estimates that airline revenues will be down at least 50% in 2020, standing at $419 billion compared to $838 billion in 2019).
Airports Council International (ACI) meanwhile estimates the airport industry will suffer a $104.5 billion (60%) reduction in revenues.
Governments have so far provided tens of billions of dollars of direct financial support for airlines but much of it is tied to terms and repayments.
IATA and ACI urged governments to address border closures and other travel restrictions and provide direct financial support that does not increase debt levels and minimises default on debt and credit losses.
The aviation bodies say dual measures are needed to avert an employment crisis in the travel support the economies around the world.
Safely re-opening borders without quarantine by using a coordinated approach to testing “would boost the entire economy and be a revenue lifeline for airlines and airports”, IATA said in a statement.
“The Covid-19 pandemic remains an existential crisis and airports, airlines and their commercial partners need direct and swift financial assistance to protect essential operations and jobs,” said ACI director general Luis Felipe de Oliveira.
“But such assistance is only one piece of the puzzle as the industry restarts and prepares to sustain continuing operations focused on the health and welfare of travellers, staff, and the public.
“ACI and IATA are aligned in calling for urgent government action to introduce widespread and coordinated testing of passengers to enable quarantine requirements to be removed. Without this action, it is not an exaggeration that the industry is facing collapse.”
About Guide2Uganda
Guide2Uganda (www.guide2uganda.ug) is the most comprehensive source of information about Uganda that exists on the web, with more content on Uganda and surrounding towns, attractions, museums and galleries than any other online guide that currently exists for Uganda as well as being a dynamic news and comprehensive events driven site with content being added daily.
According to WeFollow & Peer Index (whom both measure online influence) we are among the most influential online media organizations in Uganda. We were also awarded for ‘’Best Destination Website in Uganda’’ by Jumia Travel Uganda in the 2017-2018 Africa Travel Awards. If you are planning a visit to Uganda you can always reach us on; info@guide2uganda.ug
