IATA urges Gulf gov'ts to develop 're-start plans' as airline losses exceed $7bn - Arabianbusiness
The International Air Transport Association (IATA) has called on governments in the Middle East to develop re-start plans to safely re-link their citizens, businesses and economies to global markets when the Covid-19 pandemic permits.
IATA also called for regional coordination to ensure that the plans can be efficiently implemented and urged governments to remain vigilant about the industry’s financial situation.
IATA data shows January air passenger traffic in the region was down 82.3 percent compared to January 2019, adding that the ongoing crisis puts over 1.7 million jobs in the Middle East and $105 billion in GDP at risk.
In 2020, Middle East airlines posted losses of $7.1 billion, a loss of $68.47 for each passenger flown. With traffic at less than 20 percent of 2019 levels, the cash burn continues even with severe cost-cutting.
Airlines in the region received $4.8 billion in government aid in 2020. Most of this support ($4.1 billion) was distributed through direct cash injections. Despite this, several airlines in the Middle East remain at risk of bankruptcy or business administration, IATA warned.
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