The International Air Transport Association (IATA) strengthened its call for urgent action from European governments to provide financial relief to airlines. The latest IATA scenario for potential revenue loss by European carriers is US$76 bn and passenger demand (measured in Revenue Passenger Kilometers) is projected to be 46% below 2019 levels.
According to IATA , a decline of this magnitude puts at risk about 5.6 million jobs and $378bn in GDP supported by air transport. The industry association broke the impact of its projections down to a country level, and for example the UK would see 113.5mn fewer passengers resulting in a $21.7bn revenue loss, risking almost 402,000 jobs and around $32.7bn in contribution to the UK economy.
While Italy would have 67.7mn fewer passengers under IATA’s projections, resulting in a $9.5bn revenue loss, risking 256,000 jobs and $67.4bn in contribution to Italy’s economy.
IATA called for a combination of; direct financial support, loans, loan guarantees and support for the corporate bond market, and tax relief for European airlines.
“The air transport industry is an economic engine, supporting up to 12.2 million jobs across Europe and $823 billion in GDP. Every job created in the aviation industry supports another 24 jobs in the wider economy. Governments must recognize the vital importance of the air transport industry, and that support is urgently needed.
First, this will keep airlines financially viable during the present lockdown, preserving jobs, maintaining essential connections to repatriate citizens, and carrying life-saving air cargo supplies. Secondly, this would avoid broad economic damage by ensuring that airlines can rapidly scale-up operations when travel restrictions are lifted, jump-starting the European and global economies,” said Rafael Schvartzman, IATA’s regional vice president for Europe.