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Relief is critical for Middle East airlines as COVID-19 impact deepens says IATA

The International Air Transport Association (IATA) renewed its call for government relief measures as the impacts of the COVID-19 crisis in MENA deepen. The region’s airlines could lose $24 billion of passenger revenue compared to 2019. That is $5 billion more than was expected at the beginning of the month; job losses in aviation and related industries could grow to 1.2 million. That is half of the region’s 2.4 million aviation-related employment. Previous estimate was 0.9 million. Full-year 2020 traffic is expected to plummet by 51 per cent compared to 2019. Previous estimate was a fall of 39 per cent. GDP supported by aviation in the region could fall by $66 billion from $130 billion. Previous estimate was $51 billion. These estimates are based on a scenario of severe travel restrictions lasting for three months, with a gradual lifting of restrictions in domestic markets, followed by regional and intercontinental. “Airlines in the Middle East continue to be battered by the impact of COVID-19. Passenger traffic has all but ground to a halt and revenue streams have evaporated. No amount of cost cutting will save airlines from a liquidity crisis. The collapse of air transport will have devastating effects on countries’ economies and jobs. And in a region where aviation is a key pillar of many nations’ economies the effect will be much worse. Direct financial support is essential to maintain jobs and ensure airlines can remain viable businesses,” said Muhammad Al Bakri, Regional Vice President for Africa and the Middle East, IATA. Some of the impacts at national level include: Saudi Arabia- 35 million fewer passengers resulting in a US $7.2 billion revenue loss, risking 287,500 jobs and US $17.9 …

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