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IATA revises upwards estimate of expected losses from COVID-19 at region’s carriers
March 27th 2020
Airlines of the Asia-Pacific are expected to experience a US$88 billion reduction in revenue in calendar 2019 as the coronavirus pandemic plunges the global economy into recession, figures from the International Air Transport Association (IATA) show. Read More »
The latest estimate, published on March 24, represented a 54% increase from IATA's forecast three weeks ago of a US$57.3 billion revenue loss for the region.
IATA director general and CEO, Alexandre de Juniac, said the aviation industry faced its "gravest crisis" and reiterated calls for government support as airlines grounded fleets and faced increasing restrictions on travel.
"The figures speak for themselves. The air transport industry is in its deepest crisis ever," de Juniac said in a statement.
"Without immediate government relief measures, there will not be an industry left standing. Airlines need US$200 billion in liquidity support simply to make it through.
"Some governments have already stepped forward, but many more need to follow suit."
Overall, IATA now forecasts the global airline industry would suffer a US$252 billion revenue loss in calendar 2019. This was more than twice the US$113 billion it had previously forecast on March 5 and represented a 44% reduction from the prior year.
The Asia-Pacific would bear the brunt of the coronavirus pandemic with Europe (US$76 billion) and North America (US$50 billion) not far behind.
On March 26, IATA said it had written to the heads of government in 18 Asia-Pacific states appealing for urgent emergency support for their airlines through direct financial aid, loans and loan guarantees or tax relief.
IATA regional vice president Asia-Pacific, Conrad Clifford, said the aviation industry supported 30 million jobs.
“A growing number of governments in Asia-Pacific, including Australia, Hong Kong, New Zealand and Singapore, have announced financial relief packages for the airline industry. We are grateful to them for the assistance rendered during this dark period for the airline industry," Clifford said in a statement.
"But we need more governments to come on board to support the airline industry serving their markets."
"Airlines are desperately trying to survive in the most difficult times imaginable," de Juniac said.
"We have the people and the experience to see this through. But, to be perfectly frank, we don’t have the money. And we need governments to bridge us to the point where we can start to recover."
IATA figures showed markets with severe travel restrictions, such as quarantine for arriving passengers, partial travel bans or outright border closures, covered about 98% of global passenger revenues.
The association said capacity, measured by available seat kilometres (ASK) was likely to fall 65% during the second quarter of calendar 2020, compared with the prior corresponding period.
Demand represented by revenue passenger kilometres (RPK) was expected to drop by 38% in calendar 2020.
