European Airlines Lose Nearly $76 Billion Revenues In 202029/03/2020
According to IATA or International Air Transport Association predicts that the major European airlines will lose their revenues in 2020.
Alongside, there are chances of major fall of passenger numbers to 46% or almost half compared to passenger levels in 2019.
Moreover, the IATA estimates that 5.6 million workers in the airlines industry will lose their jobs.
Since, Coronavirus is now at Pandemic world’s leading airlines are already struggling with the declining of their passenger levels.
Major airlines are now offering refunds or reschedule their pre-booked airline tickets under the current on-going worldwide crisis.
In the nearer future, this pandemic episode will have a significant affect not only in Europe but in other parts of the world.
Canada’s leading airline Air Canada already announced for a major job cuts under the latest crisis.
On the other hand, in UK major airline is also seeking for bail-outs from the government to survive during this on-going crisis.
The IATA predicts that the UK will lose 113.5 million fewer passengers resulting in a $21.7/£17/€19 billion revenue loss.
There are risks of loosing almost 402,000 of jobs and around $32.7/£26/€29 billion in contribution to the UK economy.
Additionally, there are other leading European countries like France, Germany, Spain and Italy will have to lose nearly 200 million passengers in 2020. This will totalling of nearly $70/£56/€63 billion worth of revenue loss.
A larger number of airline staffs will lose their jobs during this period. There would be jobs from Spain – 750,000, Germany – 400,000, Italy – 256,000 and France – 318,000 .
The IATA urges to the local government to provide support within major areas. This includes: direct financial support, tax relief, loan guarantees and support for the corporate bond market.
At least, this will help to local airlines to survive during the pandemic crisis. Other European countries like Norway, Sweden, Finland, Spain, and Italy has already taken the initiative to prevent any upcoming collapse within the airline industry.