International Air Transport Association on Tuesday predicted that some 25 million jobs globally are at risk with airline shutdown due to Covid-19 crisis. Accordingly, a new analysis by IATA shows that some 25 million jobs are at risk of disappearing with plummeting demand for air travel amid the COVID-19 crisis. “Globally, the livelihoods of some 65.5 million people are dependent on the aviation industry, including sectors such as travel and tourism,” IATA said in a statement.
“Among these are 2.7 million airlines jobs. In a scenario of severe travel restrictions lasting for three months, IATA research calculates that 25 million jobs in aviation and related sectors are endangered across the world….” Out of the 25 million jobs at risk, 11.2 million are in Asia-Pacific, 5.6 million in Europe, 2.9 million in Latin America, 2 million in North America, 2 million in Africa and 0.9 million in the Middle East. In the same scenario, airlines are expected to see full year passenger revenues fall by $252 billion (-44 per cent) in 2020 compared to 2019.
The second quarter is the most critical with demand falling 70 per cent at its worst point, and airlines burning through $61 billion in cash. “There are no words to adequately describe the devastating impact of COVID-19 on the airline industry. And the economic pain will be shared by 25 million people who work in jobs dependent upon airlines,” said Alexandre de Juniac, IATA’s Director General and CEO. “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.”