Economic forecasts from the International Air Transport Association (IATA) suggest that the impact of COVID on aviation will cost the world more than $1.75 trillion in GDP.

Airlines are expected to burn through cash at an astounding rate in the second half of 2020, and without support from government, the association says that the hope of a strong economic recovery could slip through our grasp.

While the aviation industry is reeling from the impact of COVID-19, the wider economic shock is yet to really hit home. Governments around the world have been forced to plow money into their communities, to save jobs and keep people housed and fed. That’s something that will take time to build back from.

Worldwide, aviation directly supports 65.5 million jobs. Its contribution to global GDP is estimated to be around 3.6%. In fact, if aviation was a country, it would rank 20th in size by GDP. It is equivalent to the GDP of Switzerland or Argentina, according to research by Forbes.

Already IATA has begun revising down the passenger traffic forecasts for parts of the world. For example, just this week, it changed its prediction for passenger traffic to, from, and within the Middle East from 45% of 2019 levels to just 30% for 2020.

While governments have been instrumental in avoiding airline failure to date, IATA is calling on them to step up with more support to see them through the difficult winter period. Chief Executive Alexandre de Juniac commented,

“Airlines did receive $160 billion in support from governments. That was a lifeline. We would have seen many more bankruptcies and job losses without it. Now, most of those programs are ending. So it is time to ask governments to take extra measures to replace or extend them into the longer term. The potential for failures and job losses in the coming months is enormous.”

IATA estimates that airlines will burn through cash at a rate of $300,000 a minute during the second half of the year, losing some $77bn before the year is out.

With the information of Joanna Bailey

SHOTLIST:

1. Various of airport staff
2. Various of woman in airport with face mask
3. Various of social distancing at airport
4. Various of passport controls
5. Various of boarding area
6. Various of passengers boarding
7. Various of canceled flights
8. Various of Latam poster
9. Various of empty airport

STORYLINE:


Economic forecasts from the International Air Transport Association (IATA) suggest that the impact of COVID on aviation will cost the world more than $1.75 trillion in GDP.

Airlines are expected to burn through cash at an astounding rate in the second half of 2020, and without support from government, the association says that the hope of a strong economic recovery could slip through our grasp.

While the aviation industry is reeling from the impact of COVID-19, the wider economic shock is yet to really hit home. Governments around the world have been forced to plow money into their communities, to save jobs and keep people housed and fed. That’s something that will take time to build back from.

Worldwide, aviation directly supports 65.5 million jobs. Its contribution to global GDP is estimated to be around 3.6%. In fact, if aviation was a country, it would rank 20th in size by GDP. It is equivalent to the GDP of Switzerland or Argentina, according to research by Forbes.

Already IATA has begun revising down the passenger traffic forecasts for parts of the world. For example, just this week, it changed its prediction for passenger traffic to, from and within the Middle East from 45% of 2019 levels to just 30% for 2020.

While governments have been instrumental in avoiding airline failure to date, IATA is calling on them to step up with more support to see them through the difficult winter period. Chief Executive Alexandre de Juniac commented,

“Airlines did receive $160 billion in support from governments. That was a lifeline. We would have seen many more bankruptcies and job losses without it. Now, most of those programs are ending. So it is time to ask governments to take extra measures to replace or extend them into the longer term. The potential for failures and job losses in the coming months is enormous.”

IATA estimates that airlines will burn through cash at a rate of $300,000 a minute during the second half of the year, losing some $77bn before the year is out.

With information of Joanna Bailey