WASHINGTON (Pakistan Point News / Sputnik - 24th April, 2020) The global financial crisis caused by the coronavirus (COVID-19) pandemic could cost European airlines as much as $89 billion in lost revenues and put the jobs of nearly 7 million people at risk, the International Air Transport Association (IATA) said in a statement on Thursday.
"IATA's analysis shows that the potential revenue loss by European carriers in 2020 has grown to $89 billion and passenger demand (measured in Revenue Passenger Kilometers) is projected to be 55% below 2019 levels," the release said. "We estimate that the present 90% collapse in air traffic puts around 6.7 million jobs at risk and could lead to a negative GDP impact of $452 billion across Europe."
The forecast exceeds IATA's March projection, when the association projected $76 billion in losses that would jeopardize some 5.6 million jobs and trim GDP by around $378 billion.
The UK, Spain, Germany, Italy and France will be among the most affected countries, IATA predicted. Airlines in those countries could see a decline of about half a billion passengers, putting at risk more than 2.7 million jobs.
Russia's airlines meanwhile could suffer around $8.5 billion in lost revenues and shed more than 400,000 aviation jobs, IATA said. Such loses would equate to around $9.3 billion in losses to the country's GDP, it added.
The association urged government to take quick steps to minimize economic damage and provide direct financial support, loans and tax relief to airlines.
