Airline companies losing $ 300,000 per minute

Economy

Published: 2020-10-23 16:39

Last Updated: 2020-10-23 16:51


Airline companies losing $ 300,000 per minute
Airline companies losing $ 300,000 per minute

International airlines are losing $ 300,000 every minute in the second half of 2020, according to the International Air Transport Association (IATA).

IATA indicated that the government support they received, which enabled them to withstand the coronavirus crisis, began to run out in light of the fear of job loss.

In a press statement, IATA renewed its call to reopen borders in various areas of the world.

In addition, they asked for relevant authorities to allow PCR tests to become the alternative for quarantine, and to provide financial support for aviation due to the continued impact of global air transport with COVID-19.

IATA also said that border restrictions, especially quarantine measures, have undermined the freedom of people's movement, which is one of the main pillars of European development.

They stressed that this collapse in air traffic has led to a devastating impact on aviation globally and on millions of workers in the industry.

The Aviation Working Group (AWG) estimated that the number of jobs directly related to aviation that are at risk, is approximately 4.8 million.

In addition, AWG added that millions of other jobs in the travel and tourism industry are at risk too.

IATA Regional Vice President for Europe Rafael Schvartzman said during the Portuguese Airlines summit that there is an urgent need for continued financial support so that the industry can stand on its feet.

Schvartzman stressed that European and world governments need to adopt a coordinated approach to reopen borders safely without quarantine, instead replacing it with a PCR test to detect any COVID-19 infections.

He added that the economically devastating effects of the coronavirus will continue as long as quarantine is a requirement, regardless of its duration.

Governments must bear the costs of PCR tests in line with International Health Regulations of the World Health Organization (WHO), said Schvartzman.

Immediate action by European governments is essential if the end-of-year travel season is to be saved in any way, he added.

IATA expects that 2020 will witness a decrease in the number of flight passengers by at least 70% compared to 2019 for travel to, from and within Europe.

In addition, IATA expects that only 340 million passengers will travel in the region in 2020, compared to nearly 1.2 billion flight passengers in 2019.