Half of the global airlines may be wiped out by COVID-19 as the devastating pandemic continues to take its toll, not just on human beings, but also on the world economy.
The global airline industry is also projected to lose $314 billion in passenger revenue in 2020, a 55 per cent drop over 2019 figures.
This grim forecast was made by the International Air Transport Association (IATA) in a report on the global aviation industry in the aftermath of the rampaging coronavirus. According to the report, made by Alexandre de Juniac, IATA’s Director General and CEO, there is a huge impact on the aviation business across the world as IATA estimated $252 billion in lost revenues in March 2020 (which was -44% against 2019) in March in a scenario with severe travel restrictions lasting three months.
Juniac feared that the impact of the pandemic could push the global economy to recession. He lamented the dwindling fortune of the value chain of the aviation sector and allied services. There is also the fear of an imminent extension of the lockdown by governments across the world. This, the report said may cause a further decline.
Juniac however recommended that “governments must include aviation in stabilization packages ” insisting that “airlines are at the core of a value chain that supports some 65.5 million jobs worldwide”.
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