On Tuesday, IATA delivered an update on the effect of the COVID-19 crisis on the global aviation industry, with specifics based on the industry’s cash burn
On Tuesday, the International Air Transport Association (IATA) said it was high time to request extra measures from the governments, so as to substitute or extend support to the airline industry as the COVID-19 pandemic keeps on having a significant financial effect on the sector.
On Tuesday, IATA delivered an update on the effect of the COVID-19 crisis on the global aviation industry, with specifics based on the industry’s cash burn.
Its director-general and CEO – Alexandre de Juniac said they expected airlines to burn through cash at about $300,00 per minute for a total of $77 billion on average for the second half of the the year.
De Juniac said:
“Today I want to emphasise that this is not just an airline problem. We know that our airport and air navigation service partners are also struggling.”
“They suffer from the same lack of demand that airlines do. And increasing their unit charges – passing the costs to other part of the value chain – to cover the gap is not an option. Remember, at the end of the value chain are consumers and they are price sensitive. Already two thirds of travelers say that they will postpone travel until their personal financial situation stabilises. Anything that makes travel more expensive in this environment will only delay the recovery and put jobs at risk,” De Juniac said in a statement.
He further said:
“Governments must be actively involved in supporting the entire sector’s finances through this unimaginably difficult time. And they should do it knowing that 10% of global economic activity is related to travel and tourism. That depends on connectivity. So supporting the industry in these challenging times is an investment worth making.”
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