“We have never seen a downturn this deep before.” That was the message from Alexandre de Juniac, IATA’s CEO, during a media briefing on COVID-19 held on 14 April.

“In our latest scenario, full year passenger revenues plummet 55% compared to 2019, while traffic falls 48%. In other words, half our business disappears. That’s catastrophic,” he warned. Explaining how that impact is amplified throughout the economy, he also highlighted that if airlines lose one job, another 24 disappear somewhere in the value chain.

IATA is continuing to lobby governments to move quickly in making the viability of airlines a priority. The industry association is calling for government support in terms of direct financial aid; loans, loan guarantees and support for the corporate bond market by governments or central banks; and tax relief.

There has been some positive news in Europe where several governments have seen progress against the disease improve to the point that they are beginning to relax their lockdown restrictions and re-open economies. However, “this does not include a re-start for aviation,” de Juniac added.

He also stated that while China and South Korea have been successful in controlling the disease within their own borders, they are now doubling down on international travel restrictions to avoid importing a second outbreak.

Suggesting that the keys to success in aviation’s recovery post COVID-19 are “harmonisation and cooperation,” de Juniac said: “Unilateral actions cannot restart aviation. Governments must work with each other and together with the industry.”

He also highlighted that its important to remember, “We have the best minds in the world focusing together on solving the challenges that COVID-19 has brought to the global air transport system.”

He concluded that: “Even though the end-game for COVID-19 is not yet clearly visible, it is absolutely clear that we must work and plan for it together.”

 

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