Amman, Jordan, 2020-Apr-24 — /Travel PR News/ — The International Air Transport Association (IATA) renewed its call for government relief measures as the impacts of the COVID-19 crisis in MENA deepen.
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, IATA’s Regional Vice President for Africa and the Middle East.
Some of the impacts at national level include:
To minimize the broad damage that these losses would have across the Middle East economies, it is vital that governments step up their efforts to aid the industry.
IATA is calling for a combination of:
Looking Ahead
In addition to vital financial relief, the industry will also need careful planning and coordination to ensure that airlines are ready when the pandemic is contained.
IATA is scoping a comprehensive approach to re-starting the industry when governments and public health authorities allow. A series of virtual regional summits, bringing together governments and industry stakeholders are taking place this week.
The main objectives will be:
“As governments struggle to contain the COVID-19 pandemic, an economic catastrophe has unfolded. Re-starting aviation and opening borders will be critical to the eventual economic recovery. Airlines are eager to get back to business when and in a way that it is safe. But starting up will be complicated. We need to make sure that the system is ready, have a clear vision of what is needed for a safe travel experience, establish passenger confidence and find ways to restore demand. Cooperation and harmonization across borders will be essential to restart aviation,” said Al Bakri.
Latest impact estimates, selected Middle East and North Africa countries
NATION | REVENUE IMPACT (US$ BILLION) | PASSENGER DEMAND IMPACT (MILLIONS) | PASSENGER DEMAND IMPACT % | POTENTIAL JOBS IMPACT | POTENTIAL GDP IMPACT (US$ BILLIONS) |
---|---|---|---|---|---|
Saudi Arabia | -7.2 | -35 | -51% | -287,500 | -17.9 |
UAE | -6.8 | -31 | -53% | -378,700 | -23.2 |
Egypt | -2.2 | -13 | -48% | -279,800 | -3.3 |
Morocco | -1.7 | -11 | -41% | -499,000 | -4.9 |
Iran | -1.8 | -8.7 | -47% | -206,900 | -4.3 |
Kuwait | -1 | 5.2 | -41% | -24,100 | -1.6 |
Algeria | -0.79 | -5.8 | -58% | -169,800 | -3 |
Qatar | -1.7 | -4.8 | -49% | -70,200 | -2.8 |
Tunisia | -0.6 | -4.3 | -44% | -92,700 | -1.2 |
Oman | =-0.7= | =-4.3 | -48%= | -51,500 | -1.7= |
Impact Estimate April 2nd
NATION | REVENUE IMPACT (US$ BILLION) | PASSENGER DEMAND IMPACT (MILLIONS) | PASSENGER DEMAND IMPACT % | POTENTIAL JOBS IMPACT | POTENTIAL GDP IMPACT (US$ BILLIONS) |
---|---|---|---|---|---|
Saudi Arabia | -5.61 | -26.7 | -39% | -217,570 | -13.6 |
UAE | -5.36 | -23.8 | -40% | -287,863 | -17.7 |
Egypt | -1.66 | -9.5 | -35% | -205,560 | -2.4 |
Jordan | -0.5 | -2.8 | -38% | -26,400 | -0.8 |
Morocco | -1.30 | -8.1 | -38% | -372,081 | -3.4 |
Oman | -0.57 | -3.3 | -37% | -39,452 | -1.3 |
Qatar | -1.32 | -3.6 | -37 | -53,640 | -2.1 |
Notes for editors:
For more information, please contact:
Corporate Communications
Tel: +41 22 770 2967
Email: corpcomms@iata.org
Source: IATA
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