IATA has called for urgent action from European
governments to provide financial relief to airlines.
IATA scenario for potential revenue loss by European carriers is
US$76 billion and RPK (passenger demand measured in Revenue
Passenger Kilometers) is projected to be 46% below 2019 levels.
A decline of this magnitude puts at risk
about 5.6 million jobs and $378bn in GDP supported by air
Some of the impacts at national level include:
United Kingdom: 113.5mn fewer passengers
resulting in a $21.7bn revenue loss, risking almost 402,000 jobs
and around $32.7bn in contribution to the UK economy.
Spain: 93.7mn fewer passengers resulting in a $13bn
revenue loss, risking 750,000 jobs and $49.4bn in contribution to
Germany: 84.4mn fewer
passengers resulting in a $15bn revenue loss, risking 400,000 jobs
and $28bn in contribution to Germany’s economy.
Italy: 67.7mn fewer passengers resulting in a $9.5bn revenue loss,
risking 256,000 jobs and $67.4bn in contribution to Italy’s
France: 65mn fewer passengers resulting
in a $12bn revenue loss, risking 318,000 jobs and $28.5bn in
contribution to France’s economy.
To minimize the
sweeping damage across the European economy that these losses
would have, it is vital that governments step up their efforts to
aid the industry. Some European governments have already acted,
including Norway, Sweden, Finland, Spain, and Italy. But more help
is needed. IATA is calling for a combination of:
– direct financial support;
– loans, loan guarantees and support
for the corporate bond market; and
– tax relief.
transport industry is an economic engine, supporting up to 12.2
million jobs across Europe and $823 billion in GDP. Every job
created in the aviation industry supports another 24 jobs in the
wider economy. Governments must recognize the vital importance of
the air transport industry, and that support is urgently needed.
First, this will keep airlines financially viable during the
present lockdown, preserving jobs, maintaining essential
connections to repatriate citizens, and carrying life-saving air
cargo supplies. Secondly, this would avoid broad economic damage
by ensuring that airlines can rapidly scale-up operations when
travel restrictions are lifted, jump-starting the European and
global economies,” said Rafael Schvartzman, IATA’s Regional Vice
President for Europe.
In addition to financial support,
IATA called for regulators to provide relief measures. Key
priorities in Europe include:
– An urgent temporary
amendment to the EU261 passenger rights regulation. Short-term
flexibility is needed immediately. Permitting the use of vouchers
instead of refunds, as has been allowed for some tour operators,
would give airlines breathing space to repair cash flows.
Providing a package of measures to ensure air cargo operations,
including fast track procedures to obtain overflight and landing
permits, exempting flight crew members from 14-day quarantine, and
removing economic impediments (overflight charges, parking fees,
and slot restrictions).
“Some regulators are taking
positive action. We are grateful to the European Council for
insisting on a full-season waiver to the slot use rule. This will
enable airlines and airports greater flexibility for this season
and greater certainty for next summer. But there is more to do on
the regulatory front. Amendments are urgently needed to give more
flexibility for EU 261. And they must take measures to keep air
cargo moving,” said Schvartzman.