IATA CEO:”A lifeline to the airlines now is critical”

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If your flight was cancelled due to coronavirus pandemic, you are probably in trouble to get you hard-earned money back, as almost all airlines are running out of cash. It is reported by IATA.

The reason to postpone ticket refunds is explained by a “new analysis showing that some 25 million jobs are at risk of disappearing” due to COVID-19 outbreak. The pandemic caused a plummeting demand for air travel, which in-return may cause millions of jobs lost.

IATA research calculates that 25 million jobs in aviation and related sectors are endangered across the world:

  • 11.2 million jobs in Asia-Pacific
  • 5.6 million jobs in Europe
  • 2.9 million jobs in Latin America
  • 2.0 million jobs in North America
  • 2.0 million jobs in Africa
  • 0.9 million jobs in the Middle East

That is why IATA is calling on governments to provide a set of meassures to protect the companies, specifically:

  • Direct financial support
  • Loans, loan guarantees and support for the corporate bond market
  • Tax relief

“There are no words to adequately describe the devastating impact of COVID-19 on the airline industry. And the economic pain will be shared by 25 million people who work in jobs dependent upon airlines. Airlines must be viable businesses so that they can lead the recovery when the pandemic is contained. A lifeline to the airlines now is critical,” said Alexandre de Juniac, IATA’s Director General and CEO.

“We are not expecting to re-start the same industry that we closed a few weeks ago. Airlines will still connect the world. And we will do that through a variety of business models. But the industry processes will need to adapt.”-added Juniac.