The spread of coronavirus and the resulting closures of international routes will result in a 38% fall in RPKs and a $252 billion pax revenue loss in 2020, the International Air Transport Association said Tuesday. That’s more than double the revenue losses the airline industry group projected at the beginning of March. While markets with severe restrictions cover 98% of global passenger revenues.
“Airlines are fighting for survival in every corner of the world. Travel restrictions and evaporating demand mean that, aside from cargo, there is almost no passenger business. For airlines, it’s apocalypse now. And there is a small and shrinking window for governments to provide a lifeline of financial support to prevent a liquidity crisis from shuttering the industry,” said Alexandre de Juniac, IATA’s Director General and CEO.
“We are 100% behind governments in supporting measures to slow the spread of COVID-19. But we need them to understand that without urgent relief, many airlines will not be around to lead the recovery stage. Failure to act now will make this crisis longer and more painful. Some 2.7 million airline jobs are at risk. And each of those jobs supports a further 24 in the travel and tourism value chain. Some governments are already responding to our urgent calls, but not enough to make up the $200 billion needed,” said de Juniac.
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