25 Million Jobs at Risk from Industry Slowdown: IATABy Alicia Arizpe | Tue, 04/07/2020 - 12:30
The economic slowdown caused by the COVID-19 outbreak is expected to have a significant financial impact in the aviation industry. IATA, which had previously estimated that the industry would lose US$252 billion during 2020 due to the crisis, now warns that almost 25 million jobs in the sector are at risk.
“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,” said Alexandre de Juniac, Director General and CEO of IATA. The association estimated that the COVID-19 crisis will cost the sector 11.2 million jobs in the Asia-Pacific region, 5.6 million in Europe, 2.9 million in Latin America, 2 million in North America, 2 million in Africa and 0.9 million in the Middle East.
Moreover, de Juniac warns that the impact of COVID-19 in the industry is unprecedented and that damage to the aviation industry might spread throughout economic sectors. “If aviation is not functioning, the economic damage goes well beyond the sector itself. Some 65.5 million jobs are linked to aviation. If planes do not fly, the viability of many of these jobs disappears,” he warned.
For that reason, IATA continues to work with authorities across the globe to help airlines survive the crisis. Requests include immediate financial aid in the shape of financial support, loans and tax relief. These measures, urge the association, are necessary for airlines to survive the crisis and will also be key for their eventual recovery.