2.5 crore jobs at risk globally in travel sector

The International Air Transport Association (IATA) has warned 2.5 crore jobs globally are at risk of disappearing with plummeting demand for air travel amid the COVID-19 crisis.

Also, the organisation that represents 290 airlines comprising 82% of global air traffic says it is not “expecting to re-start the same industry that (was) closed a few weeks ago” whenever travel restrictions are removed gradually.

According to IATA, about 6.5 crore people are dependent on the aviation industry across the world, including sectors such as travel and tourism, for their livelihood. These include 27 lakh airline jobs.

“In a scenario of severe travel restrictions (globally) lasting for three months, IATA research calculates that 2.5 crore jobs in aviation and related sectors are endangered across the world (including 1.1 crore in Asia-Pacific),” it said in a statement on Tuesday.

“In the same scenario, airlines are expected to see full year passenger revenues fall by $252 billion (-44%) in 2020 compared to 2019. The second quarter is the most critical with demand falling 70% at its worst point, and airlines burning through $61 billion in cash. Airlines are calling on governments to provide immediate financial aid to help airlines to remain viable businesses able to lead the recovery when the pandemic is contained.

Specifically, IATA calls for: Direct financial support; loans, loan guarantees and support for the corporate bond market and tax relief,” IATA said.

Source: Agencies

 

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