According to the International Air Transport Association (IATA)’s latest analysis, the annual passenger revenues will fall by $252 billion if severe travel restrictions remain in place for three months. That represents a 44 per cent decline compared to 2019. This is well-over double IATA’s previous analysis of a $113 billion revenue hit that was made before countries around the world introduced sweeping travel restrictions. Sharing his remark, Alexandre de Juniac, Director General and CEO, IATA said, “Failure to act now will make this crisis longer and more painful. Some 2.7 million airline jobs are at risk. And each of those jobs supports a further 24 in the travel and tourism value chain. Some governments are already responding to our urgent calls, but not enough to make up the $200 billion needed,” he said.
In urging more government action, de Juniac demanded Direct financial support by government to passenger and cargo carriers to compensate for reduced revenues and liquidity attributable to travel restrictions imposed as a result of COVID-19, loans, loan guarantees and support for the corporate bond market by the Government or Central Banks and rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020, along with a temporary waiver of ticket taxes and other government-imposed levies.