- Aviation Sector to Lose 22,200 Jobs, N160bn in 2020 – IATA
The International Air Transport Association (IATA) has said the current global pandemic would cost Nigeria’s aviation sector over $434 million or N160.58 in revenue and 22,200 jobs as flight restrictions come into effect.
The association said Nigeria would lose approximately 2.2 million passengers in 2020, up from its previous projection of 853,000 and $170m loss predicted in early March.
IATA explained that since the end of January several airlines have cancelled flights as COVID19 spreads across the African continent.
IATA said, “International bookings in Africa are down roughly 20 per cent in March and April, domestic bookings have fallen by about 15 per cent in March and 25 per cent in April, according to the latest data.
“African airlines had lost $4.4bn in revenue as of March 11, 2020. Ticket refunds have increased by 75 per cent in 2020 compared to the same period in 2019 (01 February – 11 March).”
In Nigeria, Arik Air announced it has suspended flight operations to West Coast destinations to protect both passengers and the airline staff. The airline said it would refund all affected passengers.
Alexander de Junaic, the Director-General and Chief Executive Officer, IATA, urged governments to support the aviation sector during this tough period.
He said, “Stopping the spread of COVID-19 is the top priority of governments. But they must be aware that the public health emergency has now become a catastrophe for economies and for aviation.
“The scale of the current industry crisis is much worse and far more widespread than 9/11, SARS or the 2008 Global Financial Crisis.
“Airlines are fighting for survival. Many routes have been suspended in Africa and Middle East and airlines have seen demand fall by as much as 60 per cent on remaining ones.”
President Trump had proposed to inject $50 billion into the US aviation sector to help affected airlines, reduce impacts of the virus on profitability and sustain jobs in the sector.
Air Canada on Thursday announced it would be letting go of over 5,000 flight attendants after more flight routes were shut down. The profitability of airline across the world are projected to plunge with the rising case of coronavirus.
