The global aviation industry needs an additional $ 80 billion to survive the COVID-19 pandemic

The global aviation industry needs an additional $ 80 billion to survive the COVID-19 pandemic

The International Air Transport Association (IATA) says airlines need an additional $ 80 billion to survive, as many countries tighten restrictions to prevent COVID-19.

In an interview with the French daily La Tribune on November 20, the head of the International Air Transport Association (IATA) Alexandre de Juniac said that airlines need up to 80 billion USD to survive, in the context of Restriction measures are tightened in many countries to prevent the spread of COVID-19.

Specifically, Mr. Alexandre de Juniac said that the aviation industry is estimated to need additional aid of about 70-80 billion USD in the next few months. Otherwise they won’t be able to survive.

Aviation is one of the sectors most severely affected by the restrictions imposed by governments to reduce the spread of the epidemic, even though the industry has also received an estimated bailout. to 160 billion USD.

According to Mr. de Juniac, the longer this public health crisis, the greater the risk of the industry “collapse”. Nearly 40 airlines are in very difficult situation or in bankruptcy protection status.

The travel restrictions imposed during the first outbreak of the disease forced many airlines to “cover” almost their entire fleet. Many governments have deployed various forms of bailout such as lending, pumping money and supporting employees to quit their jobs.

Although the traffic volume increased after the restrictions were relaxed, travel activity shows signs of slowing down again as the number of COVID-19 cases spikes in many countries.

IATA is expecting a 66% drop in traffic for the year of 2020. The association believes that commuter traffic will not return to 2019 levels by 2024, which is based on COVID- 19 will be widely available by mid-2021.

IATA also forecasts airline revenue at $ 419 billion, half of what it was in 2019.

Mr. de Juniac currently expects the airlines to suffer losses of up to 100 billion USD, up from the previous estimate of 87 billion USD loss.

When asked whether the crisis spurred mergers in the industry, de Juniac said that “companies need capital” to do that, but “they are in a state of mind”. Thai survival “.

However, he said there are likely to be fewer airlines due to the fact that many of them go bankrupt, and the existing ones will likely shrink when they have to stop many routes / routes and sell. less aircraft.

Mr. de Juniac’s comments came a few days before IATA’s annual meeting, which will gather representatives from 290 airlines around the world.